This is a YouTube video titled "🚨 Fed Update & Mortgage Rates 🚨" created in August 2025. The content is a detailed explanation about the recent Federal Reserve meeting, its impact on interest rates, and the potential effects on mortgage rates. The speaker discusses the Fed's voting pattern, inflation targets, and market expectations for future rate cuts, providing financial insights relevant to the economy and mortgage market. There is only one speaker presenting the information.
The Federal Reserve met today. What does it mean for mortgage rates? The Fed met and yet again they did not cut interest rates. However, it was kind of interesting to see it was a 9 to 2 vote in favor of not cutting. This is the first time in 30 years where two governors voted against the grain in order to cut. So with that, it kind of shows some internal turmoil possibly and the market is kind of taking notes. There's about a 60, 65% odds if you look at where traders are trading right now that they think the Fed will cut at their upcoming meeting in September at about the same 60% odds that there might be two rate cuts before the end of the year. There's three meetings left. So many traders are favoring that there might be two out of the three next meetings cutting rates by about a quarter percent each. Now, the Federal Reserve interest rates are not mortgage rates. Those are two totally different things. However, this is kind of a unique time where both of those are looking at the same thing, which is inflation. The Fed will not cut until they see inflation under control. They're saying they're very data dependent. They want to get inflation down to 2% and right now it's a 2.7. It's kind of been stubbornly hanging out in the mid twos for the last year or so. Now looking forward, if the Federal Reserve does end up cutting once or twice before the end of the year, it doesn't automatically mean that mortgage rates will get better. However, in the current times, I think it will certainly help. There's a couple of reasons. One is just the emotional factor. It's a good sign that, you know, they believe inflation is under control because mortgage rates are also looking for those signs. Very good chance that mortgage rates will drop. And the big reason to that is almost every time when the Fed cuts, it's to help the economy. They know they need some easing up. You know, people are pretty tight and I think we all can tell people's debts are at record highs and the Fed cutting rates gives them some relief. So when those things happen, traders like stocks and bonds types, investors, they will pour into bonds because they want a safer investment because they, they know the Fed's cutting the economy is in a little dire, you know, dire situation. Every time bonds are strong, it helps low, lower mortgage rates. So that's the connection there. I do think we will see that, you know, mortgage rates get some relief should the Fed cut. And it sounds like there's about a two thirds odds that they will.
