Mortgage Watch

𝟖𝟎𝟎𝟗 𝐄 𝐄𝐮𝐜𝐚𝐥𝐲𝐩𝐭𝐮𝐬 𝐓𝐫𝐚𝐢𝐥 low res client review photo

Why Today’s Mortgage Rate Headlines Are Misleading!

Mortgage Rates are fantastic and are near the lows of 2025. However, ever since the Fed cut the Fed Funds rate by 25 Bps, everyone thinks mortgage rates are .25% lower. This could not be further from the truth!

So why the confusion? It starts with Freddie Mac! You see, every Thursday, Freddie Mac releases its weekly mortgage rate survey—and every so often, we need to clear up the confusion it creates. Today is one of those days.

Freddie’s report is landing just one day after a Fed rate cut, and headlines are already claiming mortgage rates have dropped to the lowest levels in over a year. Sounds great, right? Not so fast.

Rates were at those lows—on Tuesday. But since then, daily averages have jumped by 0.20%, marking the fastest two-day spike since the last Fed cut. That’s no coincidence.

Here’s the truth: mortgage rates react to economic news before the Fed makes its move. By the time the cut happens, the market has already priced it in. The Fed Funds Rate isn’t the same as mortgage rates, except in limited cases like HELOCs tied to Prime.

So why does Freddie’s data look so off? It’s not wrong—it’s just late. Their survey averages rates from last Thursday through Wednesday, and most of those days saw ultra-low rates. Yesterday’s spike came too late to affect the numbers.

Bottom line: Today’s headlines are quoting outdated data. Mortgage rates are already climbing, and if you’re relying on Freddie’s Thursday snapshot, you’re looking in the rearview mirror. Reminder, rates are still fantastic!

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SOURCE & AUTHOR | Keith Murphy Branch Manager – Essex Mortgage NMLS #330827 Direct: 714-309-1140 Apply: www.GoTeamMurphy.com

About the Author

Tim Morissette, REALTOR®

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 48 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and sons Matt and Jeff, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals. This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 29 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, paper shredding and e-waste recycling event, an Easter egg hunt, & a Meet Santa Event.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.