By LeAnn Raschke, October 29, 2025
The Fed made its move, so now what? Should you refinance, buy, panic or just light a candle and manifest better snacks and cozy blanket before the ol’ Atlas comet swings by?
Let’s get grounded before you start building that bunker.
The fed rate isn’t your mortgage rate
The Fed controls short-term interest rates on things like credit cards, HELOCs and business loans.
Your mortgage rate, however, lives in it’s own universe, tied to long-term Treasury yields and inflation trends. So while the Fed’s cut might sound dramatic, your 30-year fixed rate probably just shrugged and went back to watching the skies.
Mortgage rates are stubborn
You’d think a Fed cut would send mortgage rates tumbling. But no, they’re still hanging around 6%+, which feels better than last year’s 7%-plus disaster but nowhere near the good old days of 3%.
In short: don’t expect a miracle. Mortgage rates take their sweet time adjusting, especially on their way down.
Refinancing might make sense, if it’s worth it.
Basically, don’t refinance just because everyone on the internet is screaming about a rate drop.
If your current rate starts with a 7, you might want to talk to your lender. But if you’re in the mid-6s, refinancing might save you a latte a week, not a lifestyle.
Rule of thumb: You want at least a 0.75–1% drop between your current rate and the new one and you need to plan to stay in your home long enough to recoup closing costs.
ARM borrowers are the real winners
If you’ve got a HELOC or an adjustable-rate mortgage, congrats! You’ll likely see a small dip in your payment soon. It won’t fund a bunker, but maybe it’ll buy you a case of wine to watch the comet with.
Stop trying to time the market – or the end of the world
Waiting for the perfect rate is like waiting for the perfect apocalypse: unpredictable, stressful and probably not coming the way you think. If refinancing now improves your finances or gives you some peace of mind, do it. If not, sit tight, uncertainty is the only thing we can count on.
The Fed’s cut is a cautious step, not a cosmic reset.
Mortgage rates could drift lower, but they might just hover for a while. So take a breath, check your numbers, and make smart moves, not panic moves.
Comet or not, clarity beats chaos every time.
LeAnn Raschke
Broker | OR
She/Her
As a broker I get to blend my love for real estate with my obsession with art, craftsmanship, and all the weird and wonderful architecture Portland has to offer. But what really lights me up? Helping creatives, small business owners, and first-time buyers build wealth and freedom through smart, strategic property moves.
Whether you’re dreaming of a quirky vintage bungalow or a sleek, modern masterpiece, I’m here to make the process not just doable but actually enjoyable. I’ll arm you with the knowledge, confidence and negotiation skills to turn those daydreams into keys-in-hand reality.
When I'm not out real estating, I'm hanging out with my dogs, making things out of mud or riding scoots!