What to expect from this week’s Fed meeting

Big week ahead

All eyes are on the Federal Reserve this week. 

Needless to say, we’re very interested to see if there is another rate cut, following the cut that came in September.

In our first story, we break down what to expect, and why there’s more uncertainty surrounding this meeting than others.

Make sure to check back here on Friday, when we will give you a full wrap-up of all the fallout from the meeting, and what it means for our industry.

- James and David

What to expect from this week’s Fed meeting

This week, the Federal Reserve is meeting to decide its next move on interest rates. Markets widely expect a quarter-point rate cut, bringing the federal funds rate down to a range of 3.75%–4%. This would follow September’s cut, which was the first in nine months.  

Growing divisions within the Fed, along with a lack of fresh inflation and jobs data, make this one of the most closely watched meetings of the year. Here’s what to keep an eye on:

• A divided Fed – Some policymakers, like Governor Stephen Miran, are pushing for larger half-point cuts to protect the labor market, while others warn that inflation remains too high to justify aggressive easing. The split highlights how difficult it’s become to balance rising unemployment with stubborn price pressures.

• The expected 25-basis-point cut – Futures markets have fully priced in a quarter-point reduction. Yet the real focus will be on Powell’s press conference on Wednesday, where his tone could either reinforce or dampen expectations for another cut in December.

• Data blackout complicates decisions – The ongoing government shutdown has delayed critical releases like the October jobs report and CPI data, forcing the Fed to rely on incomplete information. This limits confidence in the data-driven approach Powell prefers and increases the risk of missteps.

• Impact on mortgage rates – Mortgage rates have already dropped to about 6.2%, their lowest in over a year, as markets anticipated this move. Further declines will depend less on Wednesday’s cut and more on Powell’s guidance for the months ahead.

Our take

This week’s meeting is as much about messaging as policy. If Powell signals a cautious stance, markets may hold steady. But even a slight hint of additional cuts could push mortgage rates lower. For agents and borrowers, that means there’s a chance financing conditions could further improve. Still, with limited data and divided opinions inside the Fed, some rate turbulence should be expected in the near term.

Luxury metros where you get the most for your money

A million dollars doesn’t buy the same lifestyle everywhere. Realtor.com’s September Luxury Housing Report shows that what qualifies as “luxury” varies dramatically by location—from 4,500-square-foot estates in Atlanta to compact 1,700-square-foot condos in Honolulu.

Nationally, the entry point for luxury dipped slightly to $1.24 million, down 0.5% from August and 2.4% year-over-year, reflecting a mild cooling at the top of the market. But geography remains the ultimate driver of value.

Here are the top 5 metros where $1 million to $2 million buys the most space:

1. Atlanta, GA – 4,530 sq. ft

2. Denver, CO – 4, 272 sq. ft

3. Minneapolis, MN – 4,162 sq. ft

4. Houston, TX – 4, 112 sq. ft

5. Dallas, TX – 4, 072 sq. ft

Our take

Luxury buyers are finding more value in inland metros where land and inventory remain plentiful. Cities like Atlanta, Denver, and Dallas now offer expansive, newer homes for the same $1 million that might only buy a small condo in coastal markets like Honolulu or San Jose. This shift underscores how geography and lifestyle priorities – space, amenities, and quality of life – are redefining what “luxury” means. For agents, it’s an opportunity to guide high-end buyers toward emerging value markets where their dollar stretches farther without sacrificing prestige.

The most equity-rich markets in the country

Homeowner equity dipped slightly in the third quarter of 2025. Nationwide, 46.1% of mortgaged homes were equity-rich, meaning owners owed no more than half of their home’s market value. That’s down from 47.4% in Q2 and 48.3% a year ago, signaling a modest pullback after several years of strong gains.

Here are the top 10 states that have the most equity-rich homeowners by percentage:

1. Vermont – 86.8%

2. New Hampshire – 61.4%

3. Rhode Island – 59.8%

4. Maine – 58.6%

5. Montana – 57.8%

6. Hawaii – 57.3%

7. Massachusetts – 56.7%

8. California – 55.5%

9. Idaho – 54.9%

10. New York – 54.7%

Our take

After years of rapid equity buildup that peaked in 2022, homeowners’ wealth is beginning to level off. The small drop in equity-rich properties suggests the market is adjusting to higher borrowing costs, slower price growth, and affordability pressures. Still, with home values near record highs and supply remaining tight, most owners continue to sit on substantial equity cushions – keeping them in strong financial shape even as the market cools.

Agents, you have a choice. Keep sending your clients market reports they'll never open, or use Altos to send them beautiful, highly engaging insights on the market that are designed to win more listings.

Schematics

The news that just missed the cuts

• What agents need to know about “generative engine optimization”

• Brokers demand change to these 6 areas to “restore trust” in NAR

• eXp unveils AI program for agents

• Study and use this listing framework before spring 2026

• This $50 million beach compound sets a new record in San Diego

Foundation Plans

Advice from James and David to win the day

As we mentioned in our last edition, fellow agent Tom Toole recently shared a powerful breakdown of what separates agents who consistently hit their goals from those who fall short. It’s worth every minute of your time. Today, we’re wrapping up our look at the habits that help top producers dominate their markets.

1. Top producers take action – The best agents don’t wait for business to show up. Referrals are great, but hoping your phone rings isn’t a plan. The pros know how to balance both — chasing deals now and planting seeds for the future. If you’re always waiting, you’re playing defense. Get back on offense and make things happen.

2. Top producers practice… a lot – Pick any sport or endeavor, none of the top players are riding high on just their talent alone. They are putting in the work. Make sure you have the mentality of a pro. The top agents don’t just rely on being likable or smooth. They role-play, rehearse their listing presentations, and refine their scripts until they sound effortless. Practice is what gives them confidence when it’s go-time.

3. Top producers protect their schedule – There’s a big difference between having a plan and sticking to it. Too many agents fill up their calendar only to toss it aside when something more fun comes along. The best in the game treat their time like money — if it’s on the calendar, it’s happening. No excuses, no rescheduling.

4. Top producers live in their CRM – A CRM isn’t just a fancy contact list. For top agents, it’s mission control. It tells them who to call, who to follow up with, and when to do it. Rather than overthinking about which CRM to use, what matters is that you actually use it. Make it your daily habit, and it’ll keep your pipeline full.

How does Tom’s piece strike you? Does it motivate you like it motivated us?! Drop us a line and tell us what you think.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

"Excellence is never an accident. It is always the result of high intention, sincere effort, and intelligent execution."  – Attributed to Aristotle

Thanks for reading, friends. Be intentional with your time and what you do because excellence doesn’t just happen. It takes focus, practice, and effort.

Have a great week. We’ll see you back here on Friday!

- James and David