Fed Cuts Rates: Who Needs to Rate Lock and Refinance ASAP

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 19 September 2025

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

The Federal Reserve has finally cut rates. Will mortgage rates follow? If you’ve been waiting to rate lock or refinance, is now the time, or does the market think we have even further to fall? With inflation coming down from past years’ peaks and unemployment slowly ticking up, the Fed made the decision everyone was waiting for: cut rates…cautiously. There are still more 2025 rate cuts lined up, but they may not have the effect on mortgage rates that many people think. Many expect mortgage rates could dip into the mid-5% range by late 2025—Dave isn’t so sure. Today, we’re giving you a full recap of the Fed meeting and their announcement, what current mortgage rates are, and interest rate predictions for the rest of 2025 and into 2026. Plus, Dave shares who should consider rate locking and refinancing right now as mortgage rates have fallen over the past couple of months. If you missed the Fed meeting, don’t worry, this episode will get you up to speed! In This Episode We Cover The Fed’s recent rate cut announcement and where mortgage rates are today Mortgage interest rate predictions and whether we’ll dip into the 5%-range by the end of 2025 Who should rate lock and refinance now, given that rates may go back up (what Dave would do) Future Fed rate cuts and where current Fed members think we’ll be in 2026, 2027, and beyond The two scenarios that could lead to us seeing 5% mortgage rates again And So Much More! Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/real-estate-1176 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠[email protected]⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	The Federal Reserve finally cut rates this week for the first time in nine months.
0:05.3	Does that mean we're about to see lower mortgage rates?
0:08.4	That's the key question that every real estate investor needs to understand.
0:12.7	But it's more complicated than simply saying the Fed cut rates.
0:17.2	That means mortgage rates are going to go down.
0:19.7	So today I'll break down all the factors that could impact mortgage rates and you're
0:24.2	investing in the near future.
0:26.4	And I'll give you my projection for what mortgage rates to expect for the rest of 2025.
0:36.5	Hey, everyone.
0:39.6	Welcome to the Bigger Pockets podcast.
0:41.7	Thank you all so much for being here.
0:45.0	It has been a very big week for economic news.
0:50.4	Most notably, the Federal Reserve met and made a decision about mortgage rates. So I'm going to, in this episode, recap what happened.
0:54.9	I'll also give you my analysis of what it means for mortgage rates, including my take on this Bank of America analysis, that we could be on a path to 5% mortgage rates.
1:05.9	And I'll give you my thoughts about whether or not it's a good time to lock in rates and buy a new property
1:12.1	or refinance an existing mortgage right now. Let's get into it. So first up, what just
1:18.6	happened? I am sure you probably saw this on the news or on social media, but the Federal
1:23.7	Reserve met and they decide to cut the federal funds rate by 25 basis points.
1:30.0	It was sitting at a range between 4.25 and 4.5. Now it's at 4% to 4.25%. Now, this is an important
1:38.8	change, but it wasn't altogether very surprising. Pretty much everyone knew that this was going to happen if you
1:46.3	pay attention to this stuff. Now, it's important to know, I know a lot in the news is about Jerome
1:51.7	Powell, who is the chairman of the Federal Reserve. But he doesn't set interest rate policy or
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