What happens to mortgage rates now that the Fed cut rates? Here's what's happened previously.

Fed rate cuts don't always equal lower mortgage rates, even in today's economic climate. MicroStockHub/Getty Images

After months of anticipation, the Federal Reserve trimmed its benchmark interest rate today — dropping the benchmark rate by another 25 basis points and marking its second rate cut of 2025. The move, which follows a similar quarter-point reduction in September, underscores the Fed's growing confidence that the economy can withstand a gradual return to lower borrowing costs.

For those who have been holding out hope that these Fed rate cuts would substantially lower mortgage rates , the question remains: Have the recent rate cuts actually helped homebuyers? After all, the link between the Fed's rate cuts and mortgage rates isn't as direct as many assume . W