Fed Cuts Rates (Again) — Here’s Why It Matters

[Derek Brickley]

Week of October 27, 2025

The Fed dropped rates again last week — the second cut in a row — and everyone’s asking the same thing: is this the start of a real shift, or just a pause button?

📉 Fed Cuts Rates for the Second Time This Year

The Fed lowered the Fed Funds Rate another 0.25%, putting it between 3.75% and 4%.

Their goal? Try to cool inflation without freezing the job market. Powell even said there’s “no risk-free path” forward — meaning they’re not totally sure how this plays out either.

The takeaway: This isn’t a guarantee of lower mortgage rates, but it keeps pressure on them to drift down. And when that happens, we tend to see two things: more affordability and more deals coming back to life.

🏡 Home Prices: Slower Growth, Still Climbing

Home values barely moved in August — down slightly before seasonal adjustments, up 0.2% after — but they’re still 1.5% higher than last year.

That’s not weakness; that’s balance. Even after everything the market’s been through, prices are holding steady.

The takeaway: Slower price growth + falling rates = one of the better buying windows we’ve had in a while.

📝 Pending Sales Hold Flat

Pending Home Sales didn't move much from August, but they're still sitting near this year's highs. NAR's Chief Economist said it best — mortgage rates trending toward three-year lows should help unlock more affordability heading into winter.

The takeaway: Some buyers paused earlier this fall when rates jumped. Those same buyers are now seeing a second chance.

🥜 Family Hack of the Week

Peanut butter fans, this one’s for you. Make PB&J bars: mix 2 sticks butter, 1.5 cups sugar, 2 eggs, vanilla, 2 cups peanut butter, fold in dry mix, layer jam, bake 45 min at 350°F. Done.

📅 What’s Coming Up This Week

• Wednesday: ADP private jobs data
• Ongoing: Government job and inflation reports still delayed from the shutdown

The ADP report will be a big one — if hiring slows again, there’s a good shot we’ll see another rate cut at the December meeting.

Catch you next week,