ST PAUL, Minn. — The Federal Reserve’s first interest rate cut of 2025 is sparking cautious optimism among buyers and sellers in the housing market, though experts say the impact on mortgage rates remains uncertain.

For the first time in nine months, the Fed trimmed borrowing costs this week in a move aimed at stimulating the economy. The decision lowers short-term rates, making it slightly cheaper to borrow money. But housing experts stress that the Fed’s policy doesn’t directly translate into lower mortgage rates.

“We’re really hoping that it does impact the mortgage rates,” said Jennifer Livingston, president of the Saint Paul Area Association of Realtors. “As you know, the Fed rate is different than the mortgage rate, but it can impact our mortgage rates.”

In the Twin Cities, Livi

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