The Federal Reserve’s latest rate cut won’t immediately lower mortgage payments for homeowners — but it could set the stage for cheaper borrowing as mortgage rates fall to their lowest level in more than a year, according to Freddie Mac.

On Wednesday, the Fed lowered its benchmark federal funds rate by a quarter percentage point to a range of 3.75% to 4%, the second straight cut this year and the first time since 2022 the rate has fallen below 4%.

Policymakers cited concerns about a weakening job market and the ongoing government shutdown that has disrupted key economic reports.

Financial experts say the quarter-point cut is unlikely to move long-term mortgage rates immediately because the Fed’s policy rate and mortgage rates aren’t directly linked.

“There is not a one-to-one relati

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