What the Fed’s rate cut means for buying a home, refinancing

Hoping that mortgage rates will keep dropping following the Federal Reserve’s first rate cut since last year? Don’t bank on it.

As expected, the central bank delivered a quarter-point cut Wednesday and projected it would lower its benchmark rate twice more this year, reflecting growing concern over the U.S. job market.

Meantime, the median Portland-area home sale price was $550,000 in August, declining by 0.9% from a year ago, according to Regional Multiple Listing Service data, as homes linger on the market for about two months.

Here’s a look at factors that determine mortgage rates and what the Fed’s latest move means for the housing market:

How rate cuts affect mortgage rates

Mortgage rates have been mostly falling since late July on expectations of a Fed rate cut. The average rate