Last November, the 30-year mortgage rate approached 8%. After the Federal Reserve cut interest rates on September 18, it’s approaching 6%.

The federal funds rate was cut to 5% from 5.5%. It could lower mortgage rates and stimulate consumer spending in Houston, experts say.

A surge in U.S. job growth has financial markets betting the Federal Reserve will follow last month's half-point interest rate reduction with smaller moves, and ignited a debate over whether the policy rate ends up at a higher level than previously expected.

The September jobs report showed surprising signs of strength in the labor market that have economists questioning how much more the Federal Reserve will cut interest rates in 2024.

U.S. Federal Reserve concerns about a slowing job market were relieved for at least another month when new data on Friday showed job growth jumped and the unemployment rate fell in September, adding to investor bets the central bank will cut its benchmark rate only a quarter of a percentage point next month.