"The Fed’s decision was pretty aligned with market pricing," Zhao notes, so a major drop in mortgage rates is highly unlikely. But if the Federal Reserve were to make further cuts more slowly than markets are currently predicting, she says "rates have a little bit of room to potentially come up."

The most important Federal Reserve decision day is upon us and market participants wait with bated breath regarding what Chairman Jerome Powell and his rate-setting committee team would deliver. Betting market odds suggest a steeper cut is more likely than a shallow one most economists have been factoring in.

The US Federal Reserve’s interest rate decisions have effects on both the US dollar and gold prices. As the Fed wraps up its two-day policy meeting today (September 18), markets are anticipating a potential rate cut.

It's been over four years since the last interest rate cut, and the central bank is now expected to lower rates again, with a 25 or 50 basis point (bps) cut on the table. A cut in rates would mean lower borrowing costs,