The Federal Reserve just cut rates for the third time this year—but then signaled they're basically done. So what does that actually mean for mortgage rates and homebuyers in 2026?

In this episode, Mike breaks down the December 2025 Fed meeting and explains three real reasons why mortgage rates could continue to drop in 2026, even though the Fed is pumping the brakes on future cuts.

You'll learn:

• Why the Fed doesn't actually control your mortgage rate (and what does)
• How Fannie Mae and Freddie Mac's $234 billion MBS buying spree is pushing rates down
• What happens when Jerome Powell's term ends in May 2026
• The real math behind "waiting for lower rates" vs. buying now
• Current opportunities in the Texas housing market

Special Note: This episode was created using AI voice cloning technology. The research, analysis, and insights are 100% Mike's—but the audio is AI-generated using his cloned voice. He explains why at the end and offers to show you how to do the same for your business.

[00:00] - Intro: AI voice technology transparency

[02:15] - The Fed doesn't control mortgage rates—here's what does

[05:30] - Reason #1: Fannie/Freddie's massive MBS buying spree

[08:45] - Reason #2: New Fed Chair coming in May 2026

[11:00] - Reason #3: Rates already dropped and could fall further

[13:30] - The math: Why waiting costs you $38,400

[16:15] - Texas market snapshot and current opportunities

[19:00] - What you should actually do right now

[21:45] - How this content was created (AI workflow explanation)

[23:30] - Closing and contact info

• Fannie Mae & Freddie Mac MBS Data: Referenced $234B portfolio expansion
• Federal Reserve December 2025 Meeting: Fed Funds Rate cut to 3.5-3.75%
• Texas A&M Real Estate Center: Texas housing market data
• Fed Chair Candidates: Kevin Hassett, Kevin Warsh, Chris Waller

✅ The Fed Funds Rate and mortgage rates are NOT the same thing

✅ Mortgage rates are driven by Mortgage-Backed Securities (MBS), not Fed policy

✅ Fannie/Freddie are actively buying MBS to push rates down

✅ A new Fed Chair in May 2026 could mean more rate cuts

✅ Waiting for "perfect" rates while home prices appreciate 4-5% costs more than buying now

✅ Texas market has shifted—seller concessions available, bidding wars are rare

✅ Best strategy: Buy at today's prices, refinance later if rates drop

This episode uses AI voice cloning technology. Mike wrote the script, conducted the research, and provided all analysis—but the audio was generated using his cloned voice through Eleven Labs. This allows for efficient content creation while maintaining quality and authenticity.

Interested in learning how to create content like this for your business? Contact Mike for a walkthrough of the AI tools and workflows he uses.

📞 Phone: 817-689-6079

📧 Email: mmills@sfmc.com

🔗 Links: linktr.ee/mikemillsmortgage

Mike Mills is a North Texas mortgage banker with Service First Mortgage (NMLS #756263), specializing in helping first-time buyers,...