What the Fed Decided

The hold came one month after the Fed raised its benchmark rate a quarter point to that same 3.75% to 4% range in September. In its October 28 statement, the Fed said inflation "remains elevated." Lisa D. Cook and Beth M. Hammack voted against the hold because they preferred to raise rates by 1/4 percentage point.

The Fed Doesn't Set Mortgage Rates

This is the part most people miss. The Fed sets a short-term, overnight rate for banks. Your 30-year mortgage rate follows the bond market, which reacts to inflation, the economy and a lot of other news.

Matthew Graham at Mortgage News Daily said it plainly the day before the meeting. Fed announcements often stir up volatility for rates, but that volatility is "rarely related to whether the Fed hikes/cuts/holds steady."

That's exactly how it played out. Mortgage News Daily reported that the Fed's announcement "had no impact on mortgage rate movement." The bond market was already slightly weaker before the announcement, so lenders nudged rates up a hair.

Where Mortgage Rates Landed

Here's Mortgage News Daily's 30-year fixed index as of Wednesday, October 28:

30-year fixed: 7.35%, up 0.02% from 7.33% the day before
Last week's low: 7.30%, so rates are only 0.05% above it

Rates have been fairly calm for the past week. But they're still well above last year.

Why It Matters for Buyers

Small moves add up. NAR ran the numbers on a $300,000, 30-year loan: at 7.4%, principal and interest is about $2,077 a month. At last year's 6.27% average, it was about $1,851. That's roughly $226 more per month.

Higher rates have a lot of buyers sitting on the sidelines. NAR reported that pending home sales fell 7.3% in September from August. The West, which includes us here in Utah, had the biggest drop at 9.2%.

NAR's chief economist, Lawrence Yun, sees rates in the 7% range as the new norm for now. "I don't see a major drop coming," he said.

Fewer buyers can actually work in your favor. Nearly 21% of active listings nationwide had a price cut in September, according to Realtor.com data cited by NAR. That's the highest share for September since 2018.

What We'd Do Right Now

If you're buying:

Don't try to time the Fed. This meeting proved it: the decision itself didn't move mortgage rates. Shop the home and the payment you can live with.
Ask your lender about lock options. Find out how long you can lock and whether a float-down option is available.
Negotiate beyond price. With fewer buyers out there, it's worth asking for seller-paid closing costs or a rate buydown.

If you're selling:

Buyers are shopping the monthly payment. A credit toward a buydown can stretch further than a small price cut.
Price it right from day one. More sellers are cutting prices, so homes priced to the market get the attention.

Bottom Line

The Fed held steady, and mortgage rates mostly shrugged. The market is a moving target, and every situation is different.

Thinking about buying or selling in St. George or anywhere in Southern Utah? Let's talk through what current rates mean for your budget and your timeline. Reach out to us here. We're here to help!