The Federal Reserve cut interest rates by 25 basis points on Wednesday, its first reduction since last year, and signaled two more cuts in 2025, according to AP. Mortgage rates have eased in recent weeks, with the average 30-year rate at 6.35 last week, but analysts warn they may not continue falling. Economists noted that while mortgage rates often track the 10-year Treasury yield, inflation and bond market expectations remain key drivers. Forecasts call for the 30-year average to remain above 6 this year, keeping affordability strained despite lower rates. Home sales remain sluggish, and while refinancing activity has picked up, affordability challenges persist due to high home prices, which are up about 50 since 2020.