Mortgage rates are jumping even though the Federal Reserve is expected to cut interest rates soon. That feels confusing, but there’s a simple reason behind it. This guide explains what’s going on and what you can do right now to protect your buying power.

Why Mortgage Rates Are Rising Before a Fed Rate Cut

Mortgage rates often follow the 10-year Treasury note. When markets expect the Fed to cut rates, the 10-year Treasury usually drops. When that happens, the 30-year mortgage rate tends to drop with it.

This week, the opposite happened. Mortgage rates jumped to 6.36%, even though most people expect the Fed to cut rates at its next meeting. The 10-year Treasury also moved higher, reaching 4.17%. That rise is pushing mortgage rates up with it.

Why This Move Is Not Normal

Markets do not always react the way people expect. Many traders believe the Fed may not cut as fast or as much as some hoped. Others think inflation may stay higher for longer. Because of that, investors asking for a higher return are pushing Treasury yields up, and mortgage rates are rising too.

In short, markets are nervous. When investors are unsure, rates go up.

Two Ways Homebuyers and Homeowners Can Still Win

You still have options even when rates are moving the wrong way. Here are two moves the JD.Mortgage team at PRMG helps buyers and owners use every day:

1. Use a Temporary or Permanent Buydown

You can lower your payment right away through a buydown. Many sellers and builders will offer credits to lower your interest rate in the first years or for the full loan. This protects your budget while waiting for future rate drops. For more details, visit our pages on Learn about VA loans, FHA loan basics, or Explore loan options.

2. Refinance When Rates Come Back Down

Today’s market is built for future refinancing. If you buy now and rates drop, a refinance can lower your payment later. Many buyers use this strategy instead of waiting for the “perfect rate.” You can see how future payments may look with our calculator here: Estimate your payment.

What This Means for You

Rates are going to move based on what investors think the Fed will do, not what the Fed is saying today. The JD.Mortgage team at PRMG helps you plan for both the short-term and the long-term. You don’t need to time the market. You just need a strategy.

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