Fed Cuts, Rates Rise: Why the Market Snapped Back
The Fed cut rates—and mortgage rates still spiked. Tim Lucas and Craig Berry unpack how a routine announcement turned into a market whiplash, why Powell’s press conference rattled investors, and what borrowers should watch heading into December.
In this episode you’ll learn:
- The twist: A quarter-point cut brought mortgage rates from 6.13% → 6.27%, reversing weeks of progress.
- What Powell said: December cuts are “far from a sure thing,” ending Treasury QT but continuing MBS runoff—spooking markets.
- Labor puzzle: The Fed blames shrinking workforce participation and lower immigration, not weak demand.
- AI bubble talk: Powell dismissed concerns, calling this tech cycle “different” from the dot-com era—markets weren’t convinced.
- What to watch next: Powell’s December language, the proposed 157% China tariff, and how the government shutdown leaves the Fed “flying blind.”
Read the full article:
https://www.mortgageresearch.com/current-rates/mortgage-rates-today-oct-29-2025/
https://www.mortgageresearch.com/current-rates/mortgage-rates-today-oct-29-2025/
