The Fed rate cut reaction has everyone talking—but not for the reason you think. The Fed lowered rates, yet mortgage rates jumped, leaving Realtors and buyers scratching their heads. In this episode, Mike Mills breaks down why it happened, what Jerome Powell actually said, and how to navigate one of the strangest housing markets in years.
Episode Summary
Welcome to Fed Rate Cut Reaction: Why Mortgage Rates Are Rising Instead of Falling.
Mike explains how mortgage-backed securities, not the Fed itself, drive real mortgage rates—and why tariff news and inflation fears are pushing them higher in 2025. You’ll also learn how to communicate this to your clients, structure deals using buydowns and seller concessions, and prepare for a Texas market where turnover is low, but prices are holding strong. Plus, Mike shares updates on Fannie Mae’s new credit score rules and a practical AI database workflow Realtors can use to generate more leads while spending less time chasing them.
Key Takeaways
• Master the Real Rate Equation
Learn why mortgage rates often rise after a Fed rate cut—and how to explain this clearly to clients.
• Navigate Rate Volatility with Confidence
Tariffs, inflation, and MBS demand are keeping the market unpredictable. Discover proven strategies for handling client expectations when rates move against the headlines.
• Texas Housing Market Insights
Turnover is frozen, but home prices aren’t crashing. Understand how to price listings correctly and identify motivated sellers in today’s slower market.
• Expanded Buyer Access Through Fannie Mae
As of November 16, 2025, Fannie Mae’s DU system removes the 620 minimum credit score, expanding opportunities for credit-challenged buyers.
• Build a Smarter Realtor Database
Use AI automation tools to segment contacts, send personalized market updates, and grow your client relationships without burning out.
Questions Realtors Are Asking
• Why did mortgage rates rise after the Fed cut rates?
• How can Realtors explain the Fed’s impact on mortgage rates to clients?
• What’s the 2025 housing market outlook for Texas?
• How can agents use AI tools to build their real estate database?
• What are the new Fannie Mae DU credit score rules?
• How do seller concessions compare to price cuts in this market?
• How can Realtors prepare for more rate volatility in 2025?
🕒 Timestamps
00:00 – Fed cut, mortgage rates climb
00:29 – Why the market’s in its “awkward phase”
00:48 – Show intro + Mike’s background
02:10 – Real talk: how this podcast works
02:59 – Rates update: 30-year, FHA, VA, Jumbo
03:42 – MBS vs Fed: how mortgage pricing really works
04:15 – Powell’s statements + December forecast
05:53 – Tariffs, inflation, and bond market ripple effects
07:38 – Buyer Tip: Credit score myths explained
08:04 – Fannie Mae removes 620 floor for DU loans
09:15 – Texas housing data: turnover slowdown, sticky prices
13:49 – Agent Tip: How to own the relocation niche
14:58 – Mike’s Mind: Robots, UFOs, and inflation absurdities
21:02 – Seller Tip: Concessions beat price cuts
22:16 – AI Workflow: Building your Realtor database
26:52 – Wrap-up: What Realtors can do right now
If this episode helped clarify the chaos, drop a comment below with your biggest takeaway—how are you helping your clients handle rising rates?
Share this video with your Realtor colleagues who need to hear it, and subscribe for more weekly insights on real estate, mortgage finance, and AI tools for Realtors.
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🔗 Links & Resources
For more resources, check out these links:
• Podcast Website → https://www.thetexasrealestateandfinancepodcast.com/
• Mike Mills Mortgage & Links → https://linktr.ee/mikemillsmortgage
• Mortgage News Daily → https://www.mortgagenewsdaily.com
• Texas Real Estate Research Center → https://www.recenter.tamu.edu
• Fannie Mae Selling Guide (SEL-2025-09) → https://singlefamily.fanniemae.com
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