Participants in the mortgage market are hoping for relief in the mortgage market when The Fed lowers rates tomorrow.
But the reality is the the bond market is expecting declining short-term rates, but not much change at the 10-year tenor.
Mortgage rates have fallen since October 23, 2023 as the yield curve has gradually steepened.
So don’t be surprised if The Fed cuts rates tomorrow and there is little or no reaction in mortgage rates.