Derek McGowanLoan Officer / Owner, McGowan Mortgages · Branch Manager & Top-Ranked Mortgage Advisor

🔥 The Fed’s cutting rates this week — but that doesn’t mean mortgage rates will! 🤯 #mortgage

1 Nov 2025 · 1 min

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Derek McGowan explains why the Fed's rate cut this week won't automatically lower your mortgage rate. Markets have already priced in a 96% chance of the cut, so mortgage rates respond to surprises about inflation instead. McAllen's mortgage team offers rate-lock protection: lock before the meeting and re-lock free if rates drop.

Questions this video answers

'96 plus percent' (96%+) chance.

October 29th.

They can lock a borrower in before the Fed meeting to protect if rates worsen, and re-lock instantly at no charge if rates improve.

Fed's cutting rates this week, but that doesn't mean mortgage rates will drop. Wait, I thought if the Fed cut rates, mortgage rates will also cut, right? Here's the truth. Those are two different types of rates, and it's a foregone conclusion. The Fed's most likely going to cut rates. It's a 96 plus percent chance they're cutting on October 29th. That's already priced in. From the mortgage rate point of view, mortgage rates are looking for something unexpected. If the Fed is overly optimistic that inflation's under control, mortgage rates very well could dip lower. If the Fed's a little more cautious that inflation's not under control, mortgage rates could skyrocket. So here's the McAllen mortgage team difference compared to your normal banker lender, where you only get a lock once and you have to roll the dice perfectly. We can lock you in before the Fed meets on the 29th so that you're protected if rates get worse. Good news, doesn't matter. If rates get better, we can lock you in a second's time for no charge. That's the big out mortgage team difference. So don't try to gamble on the market reach out. We'd be honored to help keep you protected during these volatile times.