Will the Fed Cut Rates by .50%? Here’s Why Mortgage Rates Are Already Moving

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The market is predicting a .50% rate cut from the Fed, and the Fed Watch tool shows a 63% chance of that happening. Last week, I mentioned that 3 rate cuts were priced in, but now they’ve priced out a 4th rate cut, which is why we’ve seen rates improve since Friday.

However, don’t expect major movement when the cuts happen, as the market has already priced in the 4 rate cuts. While Fed cuts don’t directly impact mortgage rates, they do affect them indirectly.

What do you think—will it be a .25% or .50% cut? Let me know in the comments below
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