Buying Florida
Didier Malagies is a leader in the Tampa Bay Mortgage industry, serving Pinellas, Pasco, Hillsborough counties, and beyond with his sights set on educating residential and commercial buyers regarding Florida purchases. With over 20 years of expertise, Didier has built relationships with realtors, bankers, and clients based on integrity and his drive to provide the best customer experience in the state by being there from beginning to end of every purchase.
Whether you're looking to move, invest, start a business or expand, Didier will share everything you need to know on his show every week.
Didier Malagies nmls#212566/DDA Mortgage nmls#324329
Buying Florida
Fed is cutting rates does that help us on the mortgage side and lets close your loan this month for homestead
✅ Why mortgage rates can rise even when the Fed cuts rates
Mortgage rates don’t move directly with the Fed Funds Rate. Instead, they are primarily driven by the 10-year Treasury yield and investor expectations about inflation, recession risk, and future Fed policy.
Here are the main reasons this disconnect happens:
1. Markets expected the rate cut already
If investors already priced in the Fed’s cut weeks or months beforehand, then the cut itself is old news.
When the announcement hits, mortgage rates may not fall—and often rise if the Fed hints at fewer future cuts.
2. Fed cuts can signal economic trouble
Sometimes the Fed cuts because the economy is weakening. That can cause:
Investors to worry about higher future inflation, or
A “risk-off” move where money leaves bonds
Both of these drive the 10-year yield UP, which pushes mortgage rates UP even though the Fed cut.
3. Bond investors wanted a bigger cut
If markets expect a 0.50% cut but the Fed only delivers 0.25%, that’s seen as “too tight.”
Result:
10-year yield jumps
Mortgage rates move higher
4. Fed messaging (“forward guidance”) matters more than the cut
Example:
The Fed cuts today, but says:
“We may need to slow or pause future cuts.”
That single sentence can raise mortgage rates, even though short-term rates just went lower.
5. Inflation surprises after the cut
If new inflation data comes in hot after a Fed cut, the bond market panics → yields go up → mortgage rates go up.
Quick summary
Fed Cuts Rates Mortgage Rates Move
✔ Expected or priced in Can rise or stay flat
✔ Fed hints at fewer future cuts Often rise
✔ Inflation remains sticky Rise
✔ Economy looks unstable Rise
❗ Only when 10-year yield falls Mortgage rates fall
tune in and learn https://www.ddamortgage.com/blog
didier malagies nmls#212566
dda mortgage nmls#324329