Yesterday, the Federal Reserve lowered its key interest rate by ¼%, just as most people expected. Normally, that kind of move makes borrowing cheaper. But this time, mortgage rates actually went up.
Earlier in the week, mortgage rates had fallen to some of the lowest levels we’ve seen in years. Then, after the Fed’s press conference, they jumped again. This has now happened several times in a row: the Fed announces a rate cut → the market hopes for more → and mortgage rates end up climbing instead.
Why Mortgage Rates Rose After a Fed Cut
The Fed doesn’t directly set mortgage rates. Its short-term rate influences things like credit cards and car loans, but mortgage rates move based on what investors expect from the economy.
When the Fed hints that it may pause future cuts or sees mixed economic data, investors often push long-term rates higher. That’s what we saw this week. Markets were hoping for stronger signals of more easing — but didn’t get them.
What This Means for Placer County Homeowners and Buyers
Thinking About Buying a Home?
Rates are still much lower than they were a few months ago, but they’re moving fast. A small change in rates can shift your monthly payment more than you’d think. If you’re shopping in Roseville, Rocklin, Lincoln, or Auburn, it’s a good time to check updated numbers before making an offer.
Already Own a Home?
If you’ve been watching for a refinance opportunity, this week’s news isn’t all bad. Mortgage rates are still far better than last year’s highs — but they can rise overnight. Keep your paperwork ready so you can lock in a good rate when the next dip happens.
Planning to Sell?
Buyers are very rate-sensitive right now. When rates pop higher, some buyers pause or reduce their price range. If you’re selling in Placer County, the right pricing and presentation matter more than ever. Offering credits toward a rate buydown or closing costs can make your listing stand out.
My Take
This week’s move shows how quickly things can shift. Even when the Fed cuts rates, mortgage rates can move the opposite direction. The good news: rates are still well below last year’s peaks, and local demand around Placer County remains steady.
If you’re planning to buy, sell, or refinance soon, let’s talk strategy. I’ll help you understand how today’s rates fit your timeline — and how to make the most of changing market conditions.
Call or text: (916) 316-5626
Visit: OwnPlacer.com/Patrick-Hake.php
Patrick Hake
Broker Associate | eXp Realty of California
License #01349088
Placer County Weekend Events (Oct 30 – Nov 2, 2025)
Looking for something fun to do this weekend? Here are three standout events around Placer County:
Golfland Fright Nights Haunted House
Golfland Sunsplash, Roseville
Wed Oct 30 • 7 PM–10 PM | Thurs–Sat Oct 31–Nov 1 • 6 PM–12 AM
Get ready for chills and thrills at this haunted attraction in Roseville.
golfland.com/roseville/fright_nights
Día de los Muertos Festival – Downtown Lincoln
Beerman Plaza, Lincoln
Saturday, Nov 1 • Day & Evening
Celebrate life and remembrance with live music, food, dancing, and community altars in historic downtown Lincoln.
Facebook Event
All American Speedway – Hall of Fame Night
All American Speedway, Roseville
Saturday, Nov 1 • Evening
The season finale honors racing legends with high-energy races under the lights.
allamericanspeedway.com
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