🏦 1. Fed Rate vs. Market RatesWhen the Federal Reserve cuts rates, it lowers the federal funds rate — the rate banks charge each other for overnight loans.That directly affects:Credit cardsAuto loansHome equity lines of credit (HELOCs)These tend to move quickly with Fed changes.🏠 2. Mortgage RatesMortgage rates are not directly set by the Fed — they’re more closely tied to the 10-year Treasury yield, which moves based on investor expectations for:Future inflationEconomic growthFed policy in the futureSo, when the Fed signals a rate cut or actually cuts, Treasury yields often fall in anticipation, which can lead to lower mortgage rates — if investors believe inflation is under control and the economy is cooling.However:If markets think the Fed cut too early or inflation might return, yields can actually rise, keeping mortgage rates higher.So, mortgage rates don’t always fall right after a Fed cut.📉 In short:Fed cuts → short-term rates (credit cards, HELOCs) usually fall fast.Mortgage rates → might fall if inflation expectations drop and bond yields decline — but not guaranteed.tune in and learn https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

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