Mortgage interest rates have been declining in anticipation of a Fed rate cut. Andrii Yalanskyi/Getty Images

It may not have been a surprise, but the interest rate cut the Federal Reserve issued on Wednesday was still a welcome development for millions of Americans. In the first reduction since December 2024, the central bank elected to reduce its benchmark interest rate by 25 basis points, down to a level between 4.00% to 4.25%. That's the lowest the rate has been since 2022, giving borrowers reason for optimism.

Perhaps this optimism will be most broadly felt in the mortgage rate market. It was just two years ago when rates here surged to their highest level since 2000 . But they've slowly and steadily declined for much of 2025 , hitting their lowest point in three ye

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