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Mortgage rates jump 20 basis points following Fed cut
An aerial view of homes in a neighborhood on Aug.27, 2025 in San Francisco, California.
Justin Sullivan | Getty Images
While the Federal Reserve cut its benchmark interest rate this week, mortgage rates responded by doing just the opposite.
The average rate on the 30-year fixed mortgage has jumped 20 basis points since Chairman Jerome Powell announced the cut on Wednesday and held a news conference, according to Mortgage News Daily.
This happened the last time the Fed lowered its rate as well, and the reason is pretty simple: the bond market had already priced in a cut, but it didn’t like the commentary from Powell.
On Tuesday, the average rate on the 30-year fixed had fallen to 6.13%, matching the recent low on Sept. 16, which was the day before the Fed announced its last cut, and marking the lowest level in a year.
Then this week, after the Fed said it would reduce rates and Powell answered questions in a news conference, that rate shot up 14 basis points on Wednesday and rose another 6 basis points on Thursday, to 6.33%, an even 20 basis points higher than where it was Tuesday. The last time around in September, the rate on the 30-year fixed mortgage went even higher, to 6.37%.
“The market’s enthusiasm for 3 Fed rate cuts in 2025 had grown a bit too large for the Fed’s liking,” said Matthew Graham, chief operating officer at Mortgage News Daily, in a client note. “The market was nearly 100% certain of another cut in December. The Fed was not as certain, and Powell made it a point to say so yesterday. The result is a mild re-set in yields back to levels that are more consistent with a December cut being a solid possibility, but not a full lock.”
The recent drop in rates had caused a run on refinances, with those applications up 111% last week year over year, according to the Mortgage Bankers Association. Lower rates did not, however, move the needle much for potential homebuyers.
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On the occasion, he also unveiled EPFO’s new and improved website — www.epfo.gov.in — designed with a simpler interface, better navigation, and easier access to essential services and information for all stakeholders.
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IndusInd International Holdings Limited acquires 60 percent of Invesco Asset Management India, forming a joint venture with Invesco.
IIHL, Invesco Launch AMC Joint Venture; IIHL Holds 60% Stake
IndusInd International Holdings Limited (“IIHL”), the promoter of IndusInd Bank, and Invesco Ltd. (“Invesco”) announced today that they have completed the formation of their asset management joint venture (“JV”) following IIHL’s acquisition of a 60% ownership stake in Invesco Asset Management India (“IAMI”) following all regulatory approvals and closing conditions. With Invesco retaining the balance 40% stake, both IIHL and Invesco will hold joint sponsor status under the regulatory framework.
As of September 2025, IAMI is the 16th largest domestic asset manager in India with combined onshore and offshore (through advisory) average assets under management of INR 148,358 crores for the quarter ending September 2025 and a presence in 40 cities across the country.
Both partners contribute their respective strengths to the venture, with Invesco offering its global investment management expertise and product range, while IIHL will support, through its promoted entity and subsidiaries, a robust distribution network comprising over 11,000 touchpoints across India and serving a customer base of 45 million. IIHL will also deploy the reach of several associate entities of its global shareholders that offer synergistic business operations to widen the customer base by another 50 million.
There will be no change in IAMI’s focus on investment excellence and exceptional client service. The JV will continue to operate under the same management led by Saurabh Nanavati, with the same disciplined and research-driven investment philosophy and processes that have been central to its investment offerings since 2008, ensuring strong continuity for investors, distributors, and other stakeholders.
Mr. Ashok Hinduja, Chairman, IIHL, said, “At IIHL, we are very enthused with this JV with Invesco, to augment our para banking portfolio by including Asset Management, and be a global financial (BFSI) powerhouse by 2030. This is the most opportune time, when India, on the back of rising income levels, favourable demographics, offers enormous investment prospects to all Indians, the diaspora included. We will endeavour to reach the last home, last investor transparently and efficiently and live up to investors’ expectation that mutual fund sahi hai”
Motilal Oswal Investment Advisors acted as the exclusive financial advisor to IIHL. Crawford Bayley and AZB acted as legal advisors to IIHL & Invesco, respectively.
Founded in 1993 under the visionary leadership of the late Shri S.P. Hinduja and his three brothers, IIHL is an investment holding Company well-regulated by the Financial Services Commission, Mauritius, under a Global Business License and is governed by the Board of Directors. Its investment portfolio under various Regulatory jurisdictions comprises Banking Services (IndusInd Bank, IIHL Bank & Trust Limited- Bahamas), Capital Market Assets (Afrinex Exchange Limited, Mauritius, with a cumulative listing of $13.5bn of underlying securities). Recently, it acquired the Insurance Businesses (Life, Non-Life, and Health) along with the Securities business of Reliance Capital Ltd to augment its portfolio.
IAMI began operations in India in late 2008 with the acquisition of Lotus India Asset Management Company and has since grown to serve over 2.9. million retail investor folios and over 48,000 empanelled distributors, with over 70% of its AUM in equity and equity-oriented assets. Invesco also operates an enterprise centre in Hyderabad employing more than 1,700 staff across a range of global support functions, including information technology, investment operations, finance, compliance, and human resources.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
November 02, 2025, 13:50 IST
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NEW DELHI: The impact of pre-GST revamp pause in sale of several products, such as automobiles and white goods, and the lower rates rolled out from Sept 22 slowed down the growth in gross GST receipts but the mop up remained close to the Rs 2 lakh crore-level, data for October showed. Official numbers released on Saturday showed GST collections in Oct for transactions in Sept totalled 1.96 lakh crore, an increase of 4.6% compared to Rs 1.87 lakh crore in October last year.This was the slowest pace of increase this fiscal. In Aug and Sept, GST collection rose 6.5% to Rs 1.86 lakh crore and at 9.1% to Rs 1.89 lakh crore. Gross domestic revenue grew 2% to Rs 1.45 lakh crore, while tax from imports rose nearly 13% to Rs 50,884 crore in October. The data showed GST refunds rose 39.6% year-on-year in Oct to Rs 26,934 crore.In Sept, GST Council had unveiled reforms to GST rate structure, which led to a sharp reduction in rates on a raft of items, bringing relief to consumers, and the latest data showed apprehensions of decline in collections have been negated.The rate cuts, effective September 22, have revived consumption demand, and experts said GST revenues for Nov are likely to show a sharp rebound.“Despite massive rate cuts effective from September 22, a slight increase in domestic GST collection is very encouraging and shows that demand is steadily increasing,” said Pratik Jain, Partner at consulting firm Price Waterhouse & Co LLP.“Consistent increase in GST refunds (domestic as well as exports) shows confidence of tax administration that GST collections would show positive trend in future as well. Next month’s data would have the full impact of GST cuts and would be keenly awaited,” added Jain.On the back of a fillip provided by a reduction in GST on 375 items, consumers had flocked to stores and car dealerships resulting in highest Navratri sales in over a decade, government officials had earlier said, citing industry data.“The GST collections, while aligning with immediate expectations, reflect a muted momentum in Sept primarily due to rate rationalisation effect in the majority part of the Sept month and the deferred consumer spending ahead of the upcoming festive season. This anticipated lag is likely to be compensated by more robust numbers in the next month, driven by seasonal buoyancy,” said Saurabh Agarwal, Tax Partner at EY India. “The impressive, high percentage growth in collections from states and UTs like Arunachal Pradesh, Nagaland, Lakshadweep and Ladakh is a tangible indicator of holistic economic development across India,” he said.
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