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Powell’s Balancing Act: What the Fed’s Moves Mean for Mortgage Rates and Connecticut Homebuyers

June 26, 2025 | Mortgage Market Insight | Presented by ReadySetLoan™


Federal Reserve Chair Jerome Powell recently testified before Congress, and while his tone was cautious, all ears were tuned in to what his words could mean for mortgage rates and home prices—especially here in Connecticut.


🎯 No Sudden Moves…Yet

Despite political pressures, including renewed tariff threats from former President Trump, Powell emphasized that the Fed will remain data-dependent in its decisions to cut interest rates.

“We want to see more good data,” Powell told lawmakers. Translation? While inflation is trending in the right direction, don’t count on a rate cut just yet.

That leaves the housing market, including eager Connecticut buyers, in a wait-and-see pattern—particularly since mortgage rates closely follow the Fed’s monetary policy tone.


🐷 RSL Piggy Points: What Homebuyers Should Watch

  • Mortgage Rates Are Tied to Fed Sentiment: Even a hint of a future rate cut can lead to lower yields on 10-year Treasurys—and that means better mortgage pricing.

  • Inflation Still Lingers: Powell wants “more good data” before easing policy. Until inflation reliably cools, the Fed will keep its foot near the brake.

  • Political Noise Matters Less: While global events and political chatter (like tariffs on Chinese imports) can rattle markets, the Fed’s independence is holding—for now.

  • Connecticut Housing Is Still Competitive: Lower inventory continues to support home prices in many CT towns, keeping pressure on buyers even as mortgage rates fluctuate.


🎙️ Neil’s Take


From Neil Caron, Area Sales Manager at CMG Mortgage

“Connecticut buyers should stay ready to act. Don’t try to time the Fed—work with a trusted mortgage advisor now to understand your options and lock when the timing is right. Programs like rate locks and float-downs are more important than ever.”

🏁 The ReadySetLoan™ Perspective


At ReadySetLoan™, we’re keeping a close eye on every signal from Washington so you don’t have to. Whether you’re buying your first home in Glastonbury or refinancing in Fairfield, understanding what drives rates can save you thousands over the life of your loan.


Need help making sense of the market? Let ReadySetLoan™ be your trusted educational partner and guide in navigating your mortgage journey.


➡️ Don’t let uncertainty stall your homeownership goals. Connect with ReadySetLoan™ today at www.readysetloan.com.




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