Fed cuts rates to the lowest level in three years

Plus: Pending home sales remain flat in September

October 30, 2025

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Today’s newsletter is 615 words, a 2.5-minute read.

1. Fed cuts rates to the lowest level in three years

The Federal Reserve on Wednesday approved its second consecutive interest rate cut, but Chair Jerome Powell rattled markets by casting doubt on whether another reduction will come in December.

By a 10-2 vote, the central bank’s Federal Open Market Committee lowered its benchmark overnight borrowing rate to a range of 3.75% to 4%. Alongside the rate move, the Fed announced plans to end its balance sheet reduction program, known as quantitative tightening, on December 1.

The latest cut brings the Fed’s key lending rate to its lowest level in three years.

“In the committee's discussions at this meeting, there were strongly differing views about how to proceed in December. A further reduction in the policy rate at the December meeting is not a forgone conclusion — far from it. For some part of the committee, it's time to maybe take a step back and see whether there really are downside risks to the labor market or see whether, in fact, the stronger growth that we're seeing is real.”

Fed Chair, Jerome Powell

2. Texas home sales up 4.9% in Q3 2025

According to data from Texas Realtors, a total of 90,083 homes were sold across the state in Q3 2025, a 4.9% increase compared to the same period last year. All but four Texas metros recorded more home sales in the third quarter than they did a year ago.

The uptick in sales was accompanied by a 20.9% jump in active listings, which reached 153,154 by the end of the quarter. Texas had 5.5 months of housing inventory in Q3, up from 4.7 months a year earlier.

Meanwhile, the median home price slipped 1.5% year-over-year to $335,000.

A MESSAGE FROM MONEY.COM

Home insurance rates up by 76% in some states

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3. Catch up quick

👔 David Benson, former president of Fannie Mae, returns as senior adviser. (NMP)

🍺 Iconic beer garden in Boerne hits market for $3.25M. (MySA)

💸 Rental concessions rise to a new level. (RHJ)

🏆 Texas ranks near No. 1 as the best state to find a job. (WalletHub)

🏅 Unlisted named to top 20 in TechCrunch Disrupt’s Startup Battlefield pitch competition. (TechCrunch)

4. Pending home sales remain flat in September

According to data from the National Association of Realtors (NAR) released Wednesday, pending home sales in September were unchanged from August and fell 0.9% year over year.

Month over month and year over year, pending sales increased in the Northeast and South but declined in the Midwest and West.

The Pending Home Sales Index held steady at 74.8 after climbing a revised 4.2% in August, its highest level since March.

Source: NAR

5. Houston ranks top in Texas where $1 million buys the most space

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.

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.

Houston and Dallas ranked among the top five metros where $1 million to $2 million buys the most space, averaging 4,112 sq. ft. and 4,072 sq. ft., respectively.

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