The Fed cited indicators of an expanding economy and an easing labor market after its other rate cuts. This is the third time rates have been cut this year, but economists don’t expect as many cuts in 2025.

Jerome Powell, the Fed chair, said that the central bank cut rates after each of its last three meetings because inflation had significantly slowed, but that it was a “closer call” this time. He added that he expects the Fed to cut interest rates more slowly next year, because inflation appears to be lingering.

San Francisco Federal Reserve Bank President Mary Daly on Friday said the decision by the U.S. central bank to lower interest rates on Wednesday by another quarter percentage point was a "close call," adding she agreed with Chair Jerome Powell that caution is now warranted toward further policy adjustments.

The Federal Reserve is set to announce a quarter-point cut to its benchmark rate, from about 4.6 percent to roughly 4.3 percent.

These are today's mortgage and refinance rates. Mortgage rates are higher following the latest Fed meeting, and they may not drop as much next year.