Mortgage rates may not see relief even with a September Fed cut
By: Flávia Furlan Nunes | Published: 2025-08-01 21:26:00 | Source: www.housingwire.com
Two Fed officials, Christopher J. Waller and Michelle Bowman, dissented. Waller supported a 25 basis-point cut due to minimal tariff effects and increased labor market risks. Bowman advocates for a gradual shift to a neutral policy stance, citing slowing economic growth and a less dynamic labor market.
A growing number of market participants — 88% as of Friday afternoon — anticipate a 25-bps reduction in September, according to the CME Group‘s FedWatch tool. The rest expect rates to remain unchanged.
Modest impact — for now
Friday’s jobs report for July reinforced this view. HousingWire Lead Analyst Logan Mohtashami described it as “very negative.” Job growth came in at 73,000 last month while the unemployment rate stands at 4.2%.
“The labor market is…
