Mortgage Rates Tick Up After Fed Cut

Posted by Felicia Morales, Broker/Owner at Lumina Real Estate & Lending, based in Temecula and serving all of Southern California

Wait... Didn’t the Fed Just Cut Rates?

Yes — but mortgage rates didn’t drop. In fact, they spiked. Here’s why: mortgage rates don’t directly follow the Fed Funds Rate. They react to market expectations, and those were shaken this week when Fed Chair Jerome Powell hinted that another rate cut in December is “far from certain.”

Why Mortgage Rates Don’t Always Follow the Fed

• Fed Funds Rate is a 1-day loan rate. Most mortgages last 7+ years.
• The Fed only meets 8 times per year, but mortgage rates adjust daily (sometimes multiple times a day).
• Markets usually “price in” a Fed move before it happens — meaning mortgage rates adjust in advance.

So What Happened This Week?

Markets expected another Fed cut in December. Powell’s comments erased that confidence — fast. Investors moved quickly, and so did the bonds that affect mortgage rates (MBS). The result: higher mortgage rates on Wednesday afternoon and Thursday morning.

Local Insight: What This Means for Temecula and SoCal Buyers

If you’re buying in Temecula, Murrieta, Menifee, or Wine Country, don’t rely on national headlines alone. Rates are fluid — and timing matters more than ever. I help clients lock smart, explore options, and avoid misinformation.

Or call/text me at 951‑760‑8307
— Felicia, The Broker

Source: Read the original newsletter