Meet the Team
Loan Programs
New Construction LoansAll Loan Programs
Mortgage CalculatorsReviewsBlog
Apply Now
Tips

How the Next Federal Reserve Meeting Could Affect Your Mortgage Rates

The CL Team
The CL Team
July 1, 2025

As we approach the next Federal Reserve (Fed) meeting scheduled for September 17-18, 2024, it’s crucial for both current homeowners and potential buyers to understand how this could influence mortgage rates. Here, we simplify what a potential rate cut means for your home buying or refinancing plans.

 

What Does the Federal Reserve Do?

The Federal Reserve, or "the Fed," is the central bank of the United States, which sets the pace for our economy by adjusting the federal funds rate. This rate is a baseline for banks to determine interest rates for various loans, including mortgages. When the Fed adjusts this rate, it directly affects how much you’ll pay on a home loan.

 

Potential Rate Cuts and Their Impact

For the upcoming September meeting, there is significant speculation that the Fed might lower the federal funds rate. This is anticipated due to current economic conditions and a strategic effort to manage inflation and stimulate economic growth.

 

What a Rate Cut Means

A decrease in the federal funds rate often leads to lower mortgage rates. For example, if the Fed cuts the rate by 25 basis points (0.25%), we could see a similar drop in mortgage interest rates. This means if you were looking at a mortgage rate of 5.5%, a 0.25% decrease could bring it down to 5.25%.

 

Impact on Monthly Payments

Lower interest rates can substantially decrease the monthly payments on a new home loan. For instance, on a $300,000 mortgage, a drop from 5.5% to 5.25% reduces the monthly payment by approximately $43. Over a 30-year loan, this adds up to more than $15,000 in savings.

 

What This Means for Homebuyers

If the Fed decides to lower rates at the September meeting, it could be an excellent opportunity for both first-time homebuyers looking to enter the market or for current homeowners to lower their rate.

However, it’s important to consider that while lower rates are enticing, other factors like home prices and supply should also guide your decision. You’ll want to ensure your financial health is in a position to purchase or refinance. Also make sure you consider your job stability, credit score, and debt-to-income ratio.

‍

Conclusion

As we wait for the outcomes of the next Fed meeting, it's wise to stay informed and prepared. At Luminate Home Loans, we are here to guide you through the complexities of mortgage rates and help you make decisions that align with your financial goals. Stay tuned to our blog for updates on the Fed's decisions and more tips to help you navigate the homebuying process effectively.

Share this post
As the Fed meeting on Sept 17-18, 2024, approaches, it's key for homeowners and buyers to know how it could affect mortgage rates. Stay tuned to our blog for updates as we start to learn more.
https://clteam.us/post/how-the-next-federal-reserve-meeting-could-affect-your-mortgage-rates

Discover more articles.

Stay informed with more of our informative blog posts.

Rates Take a Breather After Surprisingly Strong Jobs Report

Rates Take a Breather After Surprisingly Strong Jobs Report

A strong jobs report slowed recent mortgage rate improvements. While rates bumped up slightly, all eyes are now on the July 15 CPI report to see if inflation—and rate cuts—are on the horizon.
Read more
Moving On? Here’s How to Make This Market Work for Your Finances

Moving On? Here’s How to Make This Market Work for Your Finances

Thinking of selling? The market’s more balanced—and that’s good news. Learn how sellers are winning with smart pricing, flexibility, and strategy in today’s shifting housing landscape.
Read more
Rates Closing in on 8 Month Lows

Rates Closing in on 8 Month Lows

The Fed didn’t cut rates—but shifting expectations did push mortgage rates lower. Find out why markets are optimistic and what could impact rates in the days ahead.
Read more
View All
This is a Loan Production Office of Luminate Bank®
400 Executive Center Dr., Suite #108, Greenville, SC 29615

(864) 569-0741
origination@clteam.us

Hours: Monday to Friday 9am to 5pm
The CL Team
HomeMeet The TeamReviewsContact Us
Resources
CL Team BlogFirst-Time HomebuyersNew Construction LoansLoan ProgramsMortgage CalculatorsApply Now
Follow Us
LinkedIn
Facebook
Instagram

Caleb LeGrand NMLS 259691

Luminate Bank NMLS 1281698 Bank Headquarters 2523 S. Wayzata Blvd., Suite 100 Minneapolis, MN 55405 (952) 939-7200. This is not an offer to enter into an agreement. Information provided is outlining the minimum down payment requirements as allowed by specific loan program and product guidelines and any information, rates and programs are subject to change without prior notice and may not be available in all states. All loans are subject to credit and property approval. Luminate Bank is not affiliated with any government agency. All rights reserved. Member FDIC. Equal Housing Opportunity Lender.

Copyright © 2023-2022 CL Team at Luminate Bank. Made by Semmodo
Privacy PolicyCompany LicensesNMLS Consumer AccessAccessibility