If you’ve been paying attention lately, you may have seen that the Fed made a move at its October 28–29 meeting, and if you were thinking, “Great, mortgage rates must drop now!” well… it’s a bit more complicated.

💡 What the Fed Actually Did and Why Mortgage Rates Didn’t Plunge

At the meeting, the Fed cut the benchmark federal-funds rate by 0.25 percentage points, bringing the target range to 3.75 %–4.00 %. They also announced that beginning December 1 the runoff of Treasury securities and agency mortgage-backed securities will end (in effect halting further balance-sheet shrinkage).

But that doesn’t mean mortgage rates immediately tumbled. Here’s why:

• Mortgage rates follow long-term bond yields (especially the 10-year Treasury), not the Fed’s short-term policy rate directly.
• The market had already priced in the rate cut — so the surprise was minimal. In fact, Fed Chair Jerome Powell and others emphasized that further cuts in December are not assured.
• Inflation remains elevated and employment data are murky (the government shutdown has delayed some key releases). The Fed is cautious — meaning the “easy” part of the rate drop may already be behind us.

So while the cut is good news, the Fed’s messaging has signalled that we’re not going to see a dramatic slide in rates overnight.

🔭 What the Fed Is Signalling for the Coming Months

Here’s what borrowers should know:

• The Fed is in a position where it’s tilting toward easing, but only if the economy continues to show signs of weakness (especially in the labor market) and inflation keeps moving toward the 2% target.
• Because the Fed signalled that a December cut is far from guaranteed, mortgage rates may hover or even drift slightly higher depending on data.
• For homeowners thinking about refinancing: This is a “window of opportunity” but not a guarantee of major savings unless rates drop more. Early action and readiness matter.

🌤 The BrightSide Lending Perspective

At BrightSide Lending, we believe the smartest move is to stay prepared rather than waiting for a perfect moment that may not arrive.

• If you locked in a higher rate recently (say 6–7%), it’s absolutely worth having us run the numbers for you.
• If you’re buying now, consider locking to protect from market changes while you are purchasing your home.
• Reach out for a check-in: let’s review your current rate, the break-even horizon, and whether now makes sense to move.

Because in a market like this, the key isn’t perfect timing, it’s readiness.