Consumers have been eagerly awaiting interest rate cuts for several years, hoping the cuts would translate to a reduction in mortgage rates. When the Fed finally slashed interest rates by 0.5% in September,

The mortgage interest rates of 2020 and 2021 may never reappear but, if they do, it will be a gradual process to get them back there (minus a catastrophic economic downturn). Homebuyers and homeowners looking to refinance, then, shouldn't wait for a perfect circumstance that's unlikely to materialize.

When the Federal Reserve lowered its benchmark interest rate by half a percentage point in September, it wasn't a particularly surprising move. At that point, the Fed was expected to make its first rate cut of the year in response to cooling inflation.

In a move that consumers will welcome, the Federal Reserve on Thursday slashed its benchmark interest rate by a quarter of a percentage point to 4.5-4.75%— marking the second reduction this year. The Federal Reserve implemented a series of interest rate hikes in 2022 and 2023 to combat high inflation — which peaked at 9% in the middle of 2022.