The Fed cut rates—but mortgage rates didn’t drop. Quinton Harris and Dan Habib of MBS Highway explain why mortgage pricing works differently, what’s already priced into the market, and what buyers, sellers, and homeowners should watch next.

Special thanks to Dan Habib with MBS Highway: https://www.highway.ai/

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00:00 Fed meeting recap and episode overview
01:30 Why a Fed rate cut doesn’t equal lower mortgage rates
03:55 Labor market weakness and job revisions explained
05:40 Inflation vs prices and why confusion matters
06:30 Fed treasury purchases and liquidity impact
08:45 Neutral rate, restrictive policy, and future cuts
11:05 Dot plot breakdown and divided Fed outlook
13:00 Fed leadership changes and 2026 implications
17:35 What Fed policy means for buyers and sellers
19:45 Short-term vs long-term rates explained
22:00 Why rate cuts can push mortgage rates higher
24:20 How markets price rate cuts in advance
26:00 2024 rate cut case study and mortgage reaction
28:40 Mortgage rate outlook and timing risks
30:55 Debt issuance, deregulation, and rate pressure
33:15 Mortgage spreads and why they matter
35:05 Will mortgage rates fall under 6%?
36:20 Final takeaways and rate expectations

Ep. 264 - Why mortgage rates didn't drop after Fed Rate Cuts- w/Dan Habib