About this episode

Mike Mills explains the unexpected rise in mortgage rates following a Fed rate cut and discusses the factors influencing housing affordability in Texas.

Fed cuts rates, mortgage rates climb. If you’re wondering how that math works, you’re not alone. In this week’s episode, Mike Mills untangles the real connection between the Fed, mortgage-backed securities, and why housing affordability in Texas still isn’t catching a break. Episode Overview The Fed rate cut reaction caught everyone off guard—rates went down at the central bank but up for homebuyers. In this episode, Mike Mills explains why mortgage rates often move opposite of Fed cuts, breaking down how mortgage-backed securities (MBS) , tariffs , and investor sentiment actually drive the market. Realtors will learn how to communicate these changes clearly to clients, structure deals with buydowns and concessions , and anticipate what the next Fed meeting might bring. Mike also dives into Texas housing turnover trends, new Fannie Mae credit score updates , and how to automate your real estate database with AI tools to stay ahead in 2025’s unpredictable market. 🔑 Key Takeaways 1. Fed Cuts Don’t Equal Lower Mortgage Rates The Fed rate cut reaction shows that mortgage rates follow the bond market, not the Fed’s overnight rate. When mortgage-backed securities fall in price…

People in this episode

Host: Mike Mills

Topics covered

• mortgage rates
• Fed rate cuts
• housing affordability
• Texas real estate
• investor sentiment
• market trends

Keywords

• mortgage rates
• Fed rate cut
• Texas housing
• mortgage-backed securities
• real estate market
• housing affordability
• investor sentiment

Mentioned in this episode

Organizations: Fannie Mae

Products: mortgage-backed securities

Places: Texas

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• The Truth About Mortgage Rates and Debt in Today’s Housing Market · October 22, 2025 · 24 min
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• Realtor Strategies for Falling Rates: How to Guide Clients in a Changing Market · September 17, 2025 · 1h 8m

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