What to remember about mortgage rates as the Fed prepares to cut rates again

A Federal Reserve interest rate cut this week could help further reduce mortgage costs for homebuyers. Andrzej Rostek/Getty Images

The second-to-last Federal Reserve meeting is set to begin today and, with it, expectations of another rate cut. The central bank reduced its benchmark interest rate by 25 basis points when it met in September and is largely expected to do so again on Wednesday. That cut can potentially provide some minimal relief to a wide range of borrowers but is perhaps most eagerly anticipated by homebuyers.

Mortgage rates in September, for example, fell to a three-year low in anticipation of the Fed's rate cut at that point. And they've stayed relatively steady in the weeks that have followed. Another cut this week could open the door for homebuyers who have