Despite the increase in rates, some home buyers were returning to the market, according to the Mortgage Bankers Association. The market composite index — a measure of mortgage a

The Federal Reserve lowered rates again but economists worry that Donald Trump’s victory could reignite inflation in 2025.

Rising US debt and economic headwinds suggest that further rate cuts may not effectively lower Treasury rates or other loan rates. Read my analysis here.

However, the Fed takes a risk if it brings inflation down too much. Any major, rapid decline in economic activity can cause a major spike in joblessness, leading to a recession. You might hear the phrase "soft landing," which refers to the balancing act of keeping inflation in check and unemployment low.

Jason Furman, former chairman of the Council of Economic Advisers, says he expects the Federal Reserve to cut rates again in December, but after that, the pace of cutting will slow down. He's on "." (

The Federal Reserve has made two consecutive interest rate cuts but potential homebuyers are wondering when mortgage rates will drop. CBS News MoneyWatch correspondent Kelly O'Grady breaks down what this means.

The Federal Reserve doesn't directly set mortgage rates, but it influences them by making changes to the federal funds rate, the interest rate that banks charge each other for short-term loans. The Fed's decisions alter the price of credit, which has a domino effect on mortgage rates and the broader housing market.