A lot of people keep saying the Fed should cut rates to make housing more affordable.
But here’s the thing — mortgage rates are mostly influenced by long-term yields, not the short-term rates the Fed controls.
In fact, when the Fed cut rates in 2024, mortgage rates went up — because the bond market started worrying about inflation again.
Unless the market truly believes inflation is under control, cutting rates won’t guarantee lower mortgage rates.
And with all the tariff uncertainty lately, aggressive cuts could actually push mortgage rates higher.
So the big question is:
Will cutting rates really fix the housing market? Or are we just chasing an easy answer to a much bigger problem?
