The Federal Reserve’s anticipated interest-rate cut is old news for mortgage rates, which have retreated from 2024 highs in anticipation. But that doesn’t mean home buyers should ignore the central bank’s announcement.

Federal Reserve Governor Christopher Waller said favorable inflation data, and not worries about the labor market, are what convinced him to support policymakers’ decision to lower interest rates by a half percentage point this week.

A top Federal Reserve official warned Friday that the central bank risks prematurely declaring victory over inflation with its vote for a jumbo interest rate cut. Fed Governor Michelle Bowman was the sole dissented voice on the Federal Open Market Committee in its 11-1 decision to slash rate by 50 basis points instead of a quarter-point cut on Wednesday.