Limited Impact on Fixed-Rate Mortgages The modest change in mortgage rates is largely due to the fact that markets had already anticipated and priced in the Fed’s move. The 30-year fixed-rate mortgage briefly dipped to its lowest point of the year at 6.26%, but this remains higher than last year’s 6.09% average. It’s important to note that the federal funds rate primarily influences short-term inter-bank lending. Mortgage rates, by contrast, are more closely tied to Treasury yields and broader economic conditions. Rise in Popularity of Adjustable-Rate Mortgages (ARMs) While fixed-rate mortgages saw little movement, adjustable-rate mortgages (ARMs) responded more directly to the Fed’s action. ARMs are more sensitive to short-term…