The Federal Reserve cut rates last week for the third time this year, trimming its benchmark rate by a quarter-point in its final meeting of 2025. Even though that cut was widely expected, mortgage rates remain above their 2025 lows, according to Bankrate’s national survey of lenders. However, they’re not too far off the recent low of 6.25%.

The Federal Reserve cut short-term interest rates for a third time in 2025. What's next for borrowers and consumers?

Mortgage rates have fallen to almost their lowest level in over a year, but there’s no guarantee that they’ll keep falling after the Fed’s expected rate cut next week. If you’re financially ready, locking in now can help you secure today’s savings without trying to time the market.

Fixed mortgage rates are not set directly by the Fed but by investor appetite, particularly for 10-year Treasury bonds. When there’s uncertainty in the market, investors buy Treasury bonds, which in turn drives yields — and, often, mortgage rates — downward.

The Fed's interest rate cut will have a gradual impact on mortgages and credit card rate relief could be slow.

The Federal Reserve cut interest rates a quarter point this week, but mortgage rates often move on their own. Here’s how they’ve reacted in the early aftermath.

From design choices like what color you should paint your bathroom walls to features that can increase a seller’s home value, Amanda Pendleton, Zillow’s home trends expert, directs research on real estate,