Mortgage rates We had a bad month. Or let’s say a bad three years. It’s no surprise that potential home buyers are in this situation. eager for a silver lining in the housing market.

Even presidential election The bottom line is solved, mortgage interest relief isn’t coming any time soon. It seems that economic and political uncertainty will not ease much before the Fed’s November monetary policy meeting concludes tomorrow.

Fed has increased interest rates 11 times since the beginning of 2022 inflationcaused mortgage rates to rise. All bets are that the Fed will cut interest rates for the second time in four years on Thursday.

The 0.25% interest rate cut expected this week will not cause mortgage interest rates to suddenly drop by the same amount. After the Fed’s 0.5% interest rate cut in September, mortgage interest rates rose instead of falling.

Although the central bank’s policy decisions and the economic outlook affect credit markets, the Fed Does not directly determine mortgage rates. Mortgage rates vary widely and responding to multiple factorsSuch as investor expectations, inflation and employment data. For example, after rates hit a two-year low in early September, a surprisingly strong jobs report sent rates back up nearly 7%.

Concerns about the presidential election added fuel to the fire. Doubts about the direction of the economy (with both candidates) is a big reason why 10-year bond yields rose last month. 10-year Treasury bond and mortgage rates are strongly correlated and tend to move together.

Long-term view of mortgage interest rates

In recent weeks, bond market investors have panicked about how the next administration’s economic policies could lead to higher government spending and put upward pressure on interest rates. Rising inflation could lead the Fed to keep interest rates higher for longer, delaying additional rate cuts.

Now that the results are clear, there should be less volatility in the bond market and mortgage interest rates. Experts do not predict mortgage rates will fall dramatically regardless of Donald Trump winning the presidency and the Fed’s behavior.

In the long term, multiple outages and weak economic data in the future help lower mortgage rates. It was stated that there was a delay between the central bank’s start to reduce interest rates and the housing loan interest rates following a continuous downward trend. Jeff WenigerCFA and head of equity strategy at WisdomTree Asset Management. It could take two to five years for mortgage rates to reflect the full effects of Fed cuts.

Experts also don’t know the new “low” level for mortgage interest rates; it could be 5% or 4%, but it all depends on the changing economic outlook. No matter what, comeback 2-3% rates during the pandemic period Not likely.

Read more: CNET’s Weekly Mortgage Predictions

Don’t expect the lowest mortgage interest rate

After all there is There’s no way to guess The future of the housing market. Anything from another major crisis to a surprise rise in inflation could shake the economy. The best thing you can do without a crystal ball is to track daily mortgage rate movement.

As mortgage rates begin to drop, some home buyers will jump into the market. Others will resist even lower rates. Waiting too long can also be risky. Last month saw mortgage rates slowly moving towards 6%, but that trend quickly reversed. Now they are close to 7 percent again.

“It is impossible to guarantee what mortgage interest rates will be. That’s why it is necessary to evaluate opportunities carefully when they come,” he said. jeb smithA CNET Money expert and real estate agent with over 20 years of experience.

You Don’t rush when buying a house (even if interest rates fall) if it doesn’t make sense for your budget or lifestyle. Taking extra time to build your credit score and setting aside cash for a larger down payment will help you in the long run while also helping you save money for your future mortgage.

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