Are Mortgage Rates Really Dropping? The Truth About Mortgage Rates & the Fed

Are mortgage rates really plummeting—or is it just media hype?In this episode of The Closing Table with Lawyers Title (Ep. 103), host Tamera Gaede sits down with Aaron Bush, Senior Loan Officer at Fairway Home Mortgage, to cut through the noise around interest rates, the Federal Reserve, and the housing market.Aaron shares insights from his 27+ years of experience in the mortgage industry, breaking down:✅  Where rates started in 2025 and where they are now✅  Why media headlines don’t always tell the full story✅  What the Fed actually looks at when making rate decisions (jobs, inflation, and more)✅  The psychological impact of rates starting with a “5”✅  What buyers and sellers need to know to make smart moves right now✅  How tools like Mortgage Coach can help buyers understand their true affordabilityWhether you’re a real estate professional, a buyer, or a seller, this episode will help you understand what’s happening behind the scenes—and how it impacts your local market.👉 If you enjoy this conversation, don’t forget to subscribe for more real estate insights and leave us a 5-star review on your favorite podcast platform!CHAPTERS00:00 Introduction – Tamera welcomes listeners01:00 Meet Aaron Bush – 27 years in mortgage lending02:00 Where interest rates started vs. where they are now 04:00 Should buyers feel urgency in today’s market?06:00 The “magic number” of rates starting with a 508:00 How the Fed makes decisions (jobs & inflation)10:00 Why employment data may be flawed12:15 Key dates & reports to watch this fall14:00 Why Fed cuts don’t directly equal mortgage rate drops16:00 What’s happening inside the Fed – division and politics18:00 Upcoming Fed meetings & predictions for more cuts22:00 Do tariffs impact interest rates?24:00 Bringing it back to the local market – what matters most26:00 Explaining savings in dollars, not percentages28:00 How Mortgage Coach helps buyers understand affordability30:00 What lower rates mean for sellers & days on market32:30 Creative seller strategies: rate buydowns & advertising34:00 Conventional loan limits rising – what it means for buyers35:30 Advice for realtors: stay educated on rates & the Fed36:30 Closing thoughts & episode wrap-up