Don’t Bet on the Fed: What Investors Need to Do Now as Rates Rise Again

BiggerPockets Blog
Published: October 31, 2025
Pricing & Profitability

Summary

This BiggerPockets article discusses the current economic climate, where the Federal Reserve is cutting interest rates, yet mortgage rates are not declining. The article suggests focusing on optimizing investments in the current market by finding great markets and negotiating good deals rather than waiting for lower rates.

Key Insights

  • Mortgage rates haven't declined despite the Federal Reserve cutting the federal funds rate, due to factors like fear of recession and inflation impacting the bond market.
  • Housing affordability has been improving due to slightly lower mortgage rates, higher wages, and stagnant or correcting home prices.

Action Items

  • Focus on finding great markets and negotiating great deals, rather than being distracted by the fluctuating rates.
    Effort: medium
    Impact: medium

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