Hardworking Americans are getting a raw deal from the housing market right now. Many families thought Fed rate cuts would finally make buying a home affordable again. But here’s the truth Washington doesn’t want you to know. Those Fed cuts aren’t automatically lowering mortgage rates like they promised.
The Federal Reserve has been cutting rates, but mortgage rates are still sitting around 7 percent. That’s keeping millions of patriotic Americans locked out of homeownership. The bureaucrats in Washington act like their rate cuts are some magic solution, but they’re not telling you the whole story.
Here’s what they don’t explain on the evening news. Mortgage rates don’t actually follow Fed rates like most people think. Instead, they track something called the 10-year Treasury bond yield. When investors get nervous about inflation or government spending, these bond rates go up and so do your mortgage payments.
The Fed just announced they’re only planning two measly rate cuts for 2025. That’s way less than the four cuts they promised back in September. Fed Chair Jerome Powell is being extra cautious because he knows the economy is still shaky from years of reckless government spending.
This means American families are stuck paying sky-high mortgage rates while the elites in Washington play politics with our money. A typical family looking to buy their first home now faces monthly payments that are hundreds of dollars higher than just a few years ago. Young couples trying to start families are being priced out of the American Dream.
The Fed is worried that cutting rates too fast could spark more inflation. They remember how badly they messed up when they printed trillions of dollars and claimed inflation was temporary. Now they’re trying to clean up their own mess while ordinary Americans pay the price.
President Trump’s return to the White House has some economists concerned his policies might increase inflation pressure. But Trump’s pro-growth agenda and deregulation could actually help the economy in the long run. The real problem is years of failed liberal economic policies that got us into this mess.
The bottom line is simple. Don’t count on the Fed to save you from high mortgage rates anytime soon. American families need to prepare for rates to stay elevated while Washington continues to fumble around with our economy. The only real solution is getting government out of the way and letting free markets work again.
