Fed cuts rates, but that doesn't mean mortgages will follow

(NewsNation) — Those hoping for lower mortgage rates after the Fed's cut may be disappointed: This week's move isn't expected to bring much relief.

Part of the reason is that Wednesday's quarter-point cut was widely anticipated, so it was already priced into the market. That expectation helped drive the average 30-year mortgage rate down from 6.58% in mid-August to 6.26% this week, the lowest level in nearly a year, according to Freddie Mac.

The decline has given potential homebuyers some breathing room and set off a wave of refinancing activity, but a major shift in affordability isn't likely anytime soon.

"Mortgage rates will remain steady as bond market participants await further economic data, particularly the next jobs report on October 3," Chen Zhao, head of economics research at