October Fed Rate Cut

Rate Cut Alert: What the Fed’s Move Means for Homebuyers in Northern Utah

Yesterday the Federal Reserve announced a ¼-point cut in its target federal funds rate, lowering the range to 3.75%-4.00%. Federal Reserve.

This is a meaningful development for homebuyers, especially here in Northern Utah where even slight changes in interest rates can translate into hundreds of dollars in monthly payment difference.

Why the Fed made this move

• The Fed’s official statement cited weaker job-market signals and an increasing balance of risk tilted to employment. Federal Reserve+1
• Inflation remains above target, but the central bank is shifting focus toward easing rather than further tightening. CBS News+1
• By lowering rates, the Fed signals that borrowing costs may remain more favorable in the near term — a positive for mortgages.

What this means for homebuyers

1. Lower mortgage costs – With benchmark rates lower, lenders often respond by offering more attractive mortgage rates. That opens the door for more Affordable monthly payments or higher purchasing power.
2. Timely opportunity for buyers – If you’ve been waiting on the sidelines for “that right rate,” this cut helps strengthen your negotiating position. Combine that with incentives and ready-homes, and you may be in a sweet spot.
3. Incentives matter even more – At Nilson Homes, we’re offering a 4% lender incentive right now.  Coupled with the rate drop, this means your effective costs are better than they’ve been in recent months.
4. Act sooner rather than later – While the Fed has lowered rates now, it also cautioned that further cuts are not guaranteed. CBS News+1 That means for homebuyers in a move-in ready market, timing still matters.

What to do next

• Talk with one of our preferred lenders now and ask what your rate lock would look like with both the rate environment and the 4% incentive.
• Explore our move-in ready homes and compare how the rate change impacts your monthly payment vs. what you had in mind previously.
• Use this time to lock in a home you love while conditions are favorable — especially since the local inventory in Northern Utah tends to move quickly.
• Remember: affordability is a function of price, rate, and incentive. With all three moving in your favour, it’s a strategic moment to act.

How Nilson Homes helps you leverage this

At Nilson Homes, we know Northern Utah and we know timing. Our move-in ready homes give you the convenience of immediate occupancy, and our 4% lender incentive stacks on top of this rate cut. The combined effect: better value, greater flexibility, and less waiting. Reach out to your New Home Specialist today and let us show you how the math works.

Want the exact Fed announcement?

Here’s the official statement from the Fed: Federal Reserve Press Release – October 29, 2025 Federal Reserve

This means now is a proactive moment for homebuyers.