Why Fed Rate Cuts Don’t Automatically Lower Your Mortgage | South Dakota Update
**Press Play ^ or select the Link Below to See the full Video** Mortgage Rates Are UP! After Fed Cuts Rates. 📰 Fed Rate Cuts Are Coming — So Why Hasn’t Your Mortgage Rate Dropped? By Nick Next Door | Sioux Falls, SD | October 2025 You’ve seen the headlines: “Fed cuts rates again!” Naturally, you might expect your mortgage quote to fall the next morning. But when you call your lender, the number… hasn’t budged — or it’s even gone up. So, what gives? 💡 The Short Answer: Fed Cuts Help — Indirectly The Fed sets the overnight lending rate — a short-term rate that influences things like credit cards and home-equity lines. Mortgage rates, on the other hand, are tied to long-term bonds , especially the 10-year U.S. Treasury yield, plus a mortgage-risk spread that moves with inflation expectations and investor appetite for mortgage-backed securities (MBS). That’s why you’ll sometimes see mortgage rates rise on the same day the Fed cuts. The two don’t move in lockstep. Bottom line...