The Federal Reserve’s decision this month to cut its benchmark interest rate by 25 basis points was encouraging news for Americans eager to become homeowners. Although mortgage rates aren’t set by the Fed, they are impacted by its policy changes. Indeed, prior to — and in anticipation of — the Fed’s announcement, mortgage rates fell to their lowest level since October 2024, with the 30-year fixed rate dropping to 6.39% — spurring a 29% spike in mortgage loan applications.
