Why Mortgage Rates are Rising as the Fed Keeps Cutting

On The Market · Nov 4, 2025 · 32m

The Fed cuts rates, and mortgage rates go up. Then they do it again, and rates…go back up. How does this keep happening? Has the Fed lost complete control over mortgage rates?

The Fed has now cut rates twice in 2025, and we’re hovering around the same (if not slightly higher) mortgage rates as before the first cut. After last week’s rate cut announcement, investors were surprised to see that mortgages—once again—got even more expensive. But it’s not because of what the Fed did—it was because of what they said, potentially foreshadowing a slower, longer path back to 5% mortgage rates.

Dave is…