For home shoppers, the Fed’s big cut is likely just a small step towards affording a home

The Federal Reserve gave home shoppers what they hoped for this week: a big rate cut and a signal of more cuts to come. Even so, aspiring homebuyers and homeowners eager to refinance should temper their expectations of a big drop in mortgage rates from here. While the Fed doesn’t set mortgage rates, its policy pivot does clear a path for mortgage rates to go lower. But in this case, the Fed’s action was widely anticipated, so rates moved lower well before the cut was even announced.