Now it’s official. The Fed has cut the federal funds rate by 25 basis points Wednesday, marking its third rate reduction of 2025 and lowering the target range to 3.50% – 3.75% Yahoo Finance+1.

In its announcement, the central bank signaled that it still envisions one more potential rate cut in 2026 — but it’s likely to move cautiously, carefully weighing economic data before deciding the timing and size of future moves. Politico+1

For homeowners, borrowers, and real estate clients — this development could translate to lower borrowing costs over time, which may boost mortgage affordability. As always, the final rates will also depend on market forces and lender conditions.