The Federal Reserve just made a move that could ripple through the real estate market, and it’s one worth paying attention to. At its October 28–29, 2025 meeting, the Federal Reserve cut its benchmark interest rate to 3.75%–4.00%. This is the second rate cut of the year, signaling that the Fed wants to support steady economic growth while keeping inflation under control.
💬 What the Fed Said
According to the Fed’s statement, “economic activity has been expanding at a moderate pace.” Job growth has slowed slightly, but unemployment remains low. Inflation has risen somewhat since earlier in the year but remains manageable. In short, the Fed believes the economy is stable, but they’re easing rates to keep things that way.
🏦 What the Benchmark Rate Really Is
The benchmark rate (also called the federal funds rate) is the interest rate banks charge one another for overnight loans. It’s not the same as a mortgage rate, but the two are closely related. When the Fed lowers the benchmark rate, it can make borrowing cheaper for banks. That often trickles down to lower interest rates for consumers on things like credit cards, car loans, and mortgages. So, while you won’t see your mortgage rate change overnight, this move can help keep home loan rates stable or even nudge them slightly lower over the next few weeks.
🏠 What This Means for Homebuyers
If you’ve been waiting for a little breathing room, this is your sign to take another look.
Lower borrowing costs can make a home purchase more affordable. This is especially true in a balanced market like Denver’s, where inventory is holding steady and buyers have time to negotiate. Even a small rate reduction can make a noticeable difference in your monthly payment or your total buying power. And remember: you can always buy the home and refinance later if rates improve even more.
💰 What This Means for Homeowners
If you’re already a homeowner, now’s a smart time to review your current mortgage.
You may not see rates plunge overnight, but lenders could start offering more competitive refinance terms in the coming months. For sellers, steady rates are also good news. When buyers can afford to borrow more, it helps maintain home demand. That keeps the Denver market balanced and healthy as we close out 2025.
📈 The Bottom Line
This latest Fed rate cut is a reminder that the economy — and the real estate market — is always shifting, but not always in dramatic ways. For Denver, this is a positive sign of stability and opportunity.
Whether you’re buying, selling, or thinking about refinancing, it’s a great time to talk strategy. We can help you understand how national rate changes connect to your personal goals.
💡 Want to dive deeper? Watch our latest video for a quick breakdown of what this rate cut means for your mortgage and the Denver housing market — then reach out if you’re ready to talk about your next move.