Technologies
How the Federal Reserve Actually Affects Mortgage Rates
Experts predict the Fed won’t start cutting rates until the fall at the earliest. That means we’re not likely to see mortgage rates drop below 6.5% for a while.
If you tracked the Federal Reserve’s monetary policy decisions last year, you might have been puzzled: The Fed’s three interest rate cuts didn’t bring about lower mortgage rates. In fact, the average rate for a 30-year fixed home loan has hovered around 6.8% for the past several months.
The Fed’s interest rate decisions don’t have a direct or immediate effect on home loan rates. Often, what the central bank says about its future plans can move the market more than its actual rate changes.
On Wednesday, the Fed is expected to hold off on cutting interest rates for the fifth time this year. While mortgage rates might see some ups and downs, many economists think they’ll stay pretty much the same — between 6.5% and 7% — until the economic outlook is clearer.
«Prospective homebuyers should know markets are forward-looking, and changes in mortgage rates can happen well in advance if markets can anticipate it,» said Kara Ng, senior economist at Zillow. «While a July cut is unlikely, markets are closely watching for signals about a possible September reduction,» Ng said.
All eyes will be on Fed Chair Jerome Powell’s post-meeting remarks. If Powell signals concerns about lingering inflation or the chance of fewer cuts, bond yields and mortgage rates are likely to climb. If he expresses optimism about inflation being under control and hints at ongoing policy easing, mortgage rates could dip.
Here’s what you need to know about how the government’s interest rate policy influences your home loan.
What is the Federal Reserve’s relationship to mortgage rates?
The Fed sets and oversees US monetary policy under a dual mandate to maintain price stability and maximum employment. It does this largely by adjusting the federal funds rate, the rate at which banks borrow and lend their money.
When the economy weakens and unemployment rises, the Fed lowers interest rates to encourage spending and propel growth, as it did during the COVID-19 pandemic.
It does the opposite when inflation is high. For example, the Fed raised its benchmark interest rate by more than five percentage points between early 2022 and mid-2023, to slow price growth by curbing consumer borrowing and spending.
Changes in the cost of borrowing set off a slow chain reaction that eventually affects mortgage rates and the housing market, as banks pass along the Fed’s rate hikes or cuts to consumers through longer-term loans, including home loans.
Yet, because mortgage rates respond to several economic factors, it’s not uncommon for the federal funds rate and mortgage rates to move in different directions for some time.
Why is the Fed postponing interest rate cuts?
After making three interest rate cuts in 2024, the Fed has been in a holding pattern throughout 2025. President Trump’s unpredictable tariff campaign, immigration policies and federal cutbacks threaten to drive up prices and drag on growth.
Despite the president’s repeated calls for policymakers to cut borrowing rates immediately, economists say the central bank has good reason to pause.
«Cutting rates prematurely — especially in response to political pressure — could undermine its commitment to controlling inflation,» said Ng. » Ironically, this could cause mortgage rates to rise, not fall, counteracting the intended stimulus.»
Lowering interest rates could allow inflation to surge, which is bad for mortgage rates. Keeping rates high, however, increases the risk of a job-loss recession that would cause widespread financial hardship.
Recent data show inflation making slow but steady progress toward the Fed’s annual target rate of 2%, but price growth is expected to tick back up in the coming months as companies pass on the cost of tariffs onto consumers.
What is the forecast for Fed cuts and mortgage rates in 2025?
While experts now predict an interest rate cut in the fall, Fed Chair Powell remains noncommittal on any specific timeframe.
Inflation could prompt the central bank to forgo one (or both) of its projected rate cuts, which would keep mortgage rates high.
On the flip side, if unemployment spikes — a real possibility given the slowdown in hiring and the uptick in layoffs — the Fed could be forced to implement interest rate cuts. In that case, mortgage rates should gradually ease, though not dramatically.
Most housing market forecasts, which already factor in at least two 0.25% Fed cuts, call for 30-year mortgage rates to stay above 6% throughout 2025.
What factors affect mortgage rates?
Mortgage rates move around for many of the same reasons home prices do: supply, demand, inflation and even the employment rate.
Personal factors, such as a homebuyer’s credit score, down payment and home loan amount, also determine one’s individual mortgage rate. Different loan types and terms also have varying interest rates.
Policy changes: When the Fed adjusts the federal funds rate, it affects many aspects of the economy, including mortgage rates. The federal funds rate affects how much it costs banks to borrow money, which in turn affects what banks charge consumers to make a profit.
Inflation: Generally, when inflation is high, mortgage rates tend to be high. Because inflation chips away at purchasing power, lenders set higher interest rates on loans to make up for that loss and ensure a profit.
Supply and demand: When demand for mortgages is high, lenders tend to raise interest rates. This is because they have only so much capital to lend in the form of home loans. Conversely, when demand for mortgages is low, lenders tend to slash interest rates to attract borrowers.
Bond market activity: Mortgage lenders peg fixed interest rates, like fixed-rate mortgages, to bond rates. Mortgage bonds, also called mortgage-backed securities, are bundles of mortgages sold to investors and are closely tied to the 10-year Treasury. When bond interest rates are high, the bond has less value on the market where investors buy and sell securities, causing mortgage interest rates to go up.
Other key indicators: Employment patterns and other aspects of the economy that affect investor confidence and consumer spending and borrowing also influence mortgage rates. For instance, a strong jobs report and a robust economy could indicate greater demand for housing, which can put upward pressure on mortgage rates. When the economy slows and unemployment is high, mortgage rates tend to be lower.
Read more: Fact Check: Trump Doesn’t Have the Power to Force Lower Interest Rates
Is now a good time to get a mortgage?
Even though timing is everything in the mortgage market, you can’t control what the Fed does. «Forecasting interest rates is nearly impossible in today’s market,» said Ali Wolf, Zonda and NewHomeSource chief economist.
Regardless of the economy, the most important thing when shopping for a mortgage is to make sure you can comfortably afford your monthly payments.
More homebuying advice
Technologies
Google’s Powerful New AI Model Can Solve Your Most Complex Problems. If You Can Afford It
Gemini 2.5 Deep Think has scored well in math competitions, and a version of it is now available for those who fork over $250 a month.

A supercharged version of Google’s Gemini 2.5 large language model recently reached gold medal status at the International Mathematical Olympiad. Now you can ask a version of it (only a bronze medalist) to answer your toughest math questions. Like, how am I going to pay $250 a month for this AI subscription?
Naturally, this new version of Google’s Gemini 2.5 Deep Think is designed for complicated questions that require much more work than you’d expect from a free or cheap AI chatbot. Google said it’s designed to handle prompts that require strategic planning, creativity and deep reasoning.
Google’s making it available now to subscribers of the company’s $250-per-month AI Ultra plan. That subscription, first announced earlier this year at Google’s I/O developer conference, is a steep price to pay for generative AI tools. The tech giant teased then that this model would be among the offerings to make that price worthwhile. (You can still access other Gemini models either for free or at a $20-per-month tier.)
Generative AI developers are intent on building ever more powerful models, and one big way they’re doing so is by expanding their ability for research and increasing the amount of time these models can work. OpenAI has a Deep Research tool for ChatGPT users, and Google’s Gemini has a tool by the same name for all users.
While those research modes allow models more time, Deep Think uses «parallel thinking» to consider different ideas at once, combining or revising them as it goes. Deep Think also just has more time to think and process, which helps it find better answers but also costs more money and uses more computing power.
Technologies
These Are the Switch 2 Launch Games You Should Actually Consider
Cyberpunk 2077 leads the pack but Fast Fusion and Bravely Default also make for interesting gameplay.
The Nintendo Switch 2 hasn’t been out long but it’s still somewhat disappointing that not many new games are available yet to use the new hardware. Yes, Donkey Kong Bananza is probably the biggest hit for the Switch successor that everyone should pick up but aside from that and Mario Kart World, there’s not much else to get.
For those who are still looking for something else to play on their Switch 2, here’s a list of some of the more interesting launch games to pick in the meantime.
Cyberpunk 2077: Ultimate Edition
Aside from Mario Kart World, Cyberpunk 2077 is the most impressive launch game for the Switch 2. Not only does the game look great but it runs incredibly well. Even better than the Steam Deck. CD Projekt Red did an incredible job making arguably the best-looking Switch 2 game.
There is, however, a catch: Night City, which is huge for a video game map, is practically empty. This is a significant compromise as the other versions of Cyberpunk feature a living, robust city. Granted, the roaming NPCs didn’t do much to affect your game but they provided that feeling of being in a sprawling city landscape.
Aside from that, Cyberpunk on the Switch 2 has fast loading times, makes use of ray-tracing and has a steady frame rate, and it’s likely there will be subtle improvements over the course of multiple updates. This version also makes use of the touchscreen during hacking and there is some use of the motion controls when playing.
The key thing with Cyberpunk on the Switch 2 is understanding who this is for. As this comes with the Phantom Liberty DLC, this version of the game is solely for those Switch 2 owners who never played the game. They’ll be in for a treat but if you played any version of Cyberpunk, there is little reason to spend money on this game.
Fast Fusion
Fast Fusion is the other launch racing game for the Switch 2, with a look and feel similar to the Wipeout series found on the PlayStation consoles. The futuristic racing game is considerably more affordable than the other launch titles at only $15, but it’s appropriate, as the game doesn’t have much content.
In Fast Fusion, players drive a hover-racer that reaches speeds of 500 mph, although races aren’t just about who can go the fastest. The courses have a unique dynamic where players have to switch their vehicle’s colors from red to blue. If the color matches the boost lanes found throughout the track then the vehicle will hit top speeds while obtaining a bit of boost to use at any time during the race. However, if your vehicle’s color doesn’t match, then it will slow down considerably.
The tracks are futuristic-looking and have different obstacles, such as giant fans and boulders. The tracks’ structures are also dangerous, as vehicles can do a hop that, if done at the wrong time, can lead them to smash right into a building or platform. Players can also spin out other racers by timing their boosts just right.
While the racing is fun, that’s all there is to the game. Winning races earns you money to access new races and vehicles, but that’s about it. There’s no online play, but there is split-screen multiplayer.
In a way, Fast Fusion seems barebones, but then it dawns on you that it’s only $15. This is one of those games to purchase if you feel an urgent need to play an arcade racing game with superfast speeds.
Bravely Default: Flying Fairy HD Remaster
One of the few games that’s truly an upgrade for the Switch 2 launch titles is Bravely Default: Flying Fairy HD Remaster. Square Enix remastered the 2012 3DS game Bravely Default and, while it’s a big improvement, it’s still a remaster, meaning it’s not doing anything particularly huge with the original game.
Bravely Default HD Remaster is a turn-based JRPG that has a unique job system. A character can change from one job to another, bringing the skills they learned to the new job, such as having a monk know black magic or a red mage able to trap monsters like they’re Pokemon. It’s developing those character job combos that make the game so interesting to play, even though its storyline has the typical fantasy plot found in many JRPGs.
Because it’s a remaster, this version of Bravely Default has upgraded visuals from the 2012 Nintendo 3DS game, making it look more modern. There’s also reorchestrated music, voice cutscenes and some quality-of-life improvements over the original, like autosaves and an in-game glossary to understand everything about the game. The Switch 2 also helps in making the game a bit snappier when loading and going in and out of menus. But if you want the original 3DS experience, there is a «Legacy Mode» that takes you back to 2012.
With a price of $40, Bravely Default: Flying Fairy HD Remaster is an easy pickup for anyone in need of a JRPG to play.
Kunitsu-Gami: Path of the Goddess
If there is a truly unique game, it’s Kunitsu-Gami: Path of the Goddess. Not just because of how much it draws from Japanese folklore but also because it’s an interesting take on the tower defense formula.
In Kunitsu-Gami, players control Soh, who is a warrior defending a maiden with the help of villagers. The gameplay involves placing villagers in certain positions to fend off waves of monsters while, at the same time, Soh has to go around attacking the enemies directly with typical hack-and-slash gameplay. After battles, players do a bit of strategizing by leveling up the villagers and Soh to face the next day’s onslaught of enemies. The fun comes down to having to actually think about what’s going on at all times, instead of sitting back like in a typical tower defense game or just mindlessly button-mashing.
As for graphics, Kunitsu-Gami is not a visual giant, but the game has a charm to it. The cel-shaded look and lighting give it a fantastical look, which works for the game’s folklore roots. As it’s not so graphically intensive, you get plenty of time playing the game before the Switch 2 battery empties, too.
For $40, Kunitsu-Gami: Path of the Goddess is a game to pick up for those who want an action game with a change of pace. For those willing to wait, it is likely that publisher Capcom will drop the price by the time the holidays roll around.
Nobunaga’s Ambition: Awakening
Let me make this very clear for those unfamiliar with this series: Nobunaga’s Ambition is the driest of strategy games. There are some high-profile samurai games set in feudal Japan, such as Assassin’s Creed: Shadows and the upcoming Ghost of Yotei, but do not get it twisted. This game isn’t about recruiting samurai to take down a warlord; it’s about figuring out the right amount of rice is needed so your people won’t starve.
Nobunaga’s Ambition: Awakening is one of the oldest turn-based strategy video game franchises. It originated in Japan in the early ’80s and made its way to the US on the NES. Players step into the role of a daimyo and have to expand their lands while also being diplomatic with other leaders.
There is no «action» in the game. You will have to read a lot and figure out the best strategy to win. It’s a very slow and complex game, which, funnily enough, longtime fans of the franchise will say is more streamlined and dumbed down from previous entries in the series. There aren’t really any «visuals» other than world maps, character portraits and so many menus. Your fingers will get numb from constantly turning pages to read everything.
If you love methodical, turn-based strategy games and are super interested in feudal Japan, Nobunaga’s Ambition: Awakening is likely worth the $60. If that description doesn’t fit you, steer clear.
Technologies
Today Only: You Can Grab Samsung’s Galaxy Buds 2 Pro for Just $100 if You’re Quick
The Galaxy Buds 2 Pro deliver great sound quality, and right now, they can be yours for less.
While the new Galaxy Buds 3 Pro may have taken the older model off our list of 2025’s top wireless earbuds, the Galaxy Buds 2 Pro are still plenty good enough for a lot of people. If you’ve been looking to invest in a pair, now is the time to make the move.
Right now, Best Buy is offering the Galaxy Buds 2 Pro in black for just $100 — that’s a massive $130 discount for today only. It’s just $10 more than the lowest price we have seen on these, but it ends at midnight, so we recommend acting fast while you can.
CNET audio expert David Carnoy found a lot to love about these earbuds in his initial review, noting their comfortable stemless design, excellent sound quality and impressive voice-call performance. The noise-canceling capabilities won’t compete with pricey, premium pairs like the Sony WF-1000XM5, but are decent for the price. They also boast an IPX7 water-resistance rating and have a battery life of up to 18 hours with ANC on.
It’s also important to note that these earbuds are designed as a companion for Samsung phones, and there are a few features that are only available when paired with a Galaxy device. That includes virtual surround sound, hands-free voice assistance and new AI-powered features like real-time translation.
Hey, did you know? CNET Deals texts are free, easy and save you money.
Fortunately, there are plenty of Galaxy S25 deals or offers on the previous S24 series available right now to help you get one of these powerful Android phones in your hand for less.
There are plenty of other excellent earbuds and headphones on sale right now, and Apple users will want to check out our roundup of all the best AirPods deals as well.
HEADPHONE DEALS OF THE WEEK
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Why this deal matters
Samsung Galaxy Buds 2 Pro would normally cost you $230, and while there are plenty of people who paid that price for them, it’s not necessary with deals like this. While the new version of these earbuds is technically better, they’re nowhere near this price, so this is an excellent deal.
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