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,...

College funding strategies parents ignore. If your buyers are asking how to afford tuition and a mortgage, this episode breaks down real-world college savings plans, FAFSA filing tips, and scholarship stacking strategies. Learn how one Texas family used student-athlete recruiting and a 529 savings plan to cut future student loans without derailing their homeownership goals.

College funding strategies take center stage in this episode as Mike and his daughter Catey walk through the real-life steps they used to navigate scholarships, FAFSA planning, and long-term college savings. Catey shares her experience as a student-athlete, giving Realtors insight into how athletic recruiting actually works and why academic scholarship planning matters early. The episode explains how a 529 savings plan can reduce future debt and why so many families overlook smaller, local scholarships.

Mike also breaks down FAFSA filing tips, plus what every parent should know about tuition planning at private vs. state schools. For Realtors who get asked, “Should we save for college or buy a house first?” this conversation provides practical language for guiding clients through major financial decisions. With real examples and honest lessons learned, this episode equips real estate pros to support families navigating the balance between college costs and homeownership.

A 529 savings plan remains one of the most reliable college funding strategies thanks to tax-free growth and compounding returns. Mike explains how even small monthly contributions add up, and how new 529 rollover rules help students build long-term retirement savings. Realtors can use this insight when clients ask how college planning affects future homebuying power. Early action creates flexibility instead of financial strain.

Catey’s story shows how academic scholarship guides and strong GPAs are a major cost-saver—especially at private schools. Many parents don’t realize freshman-year grades impact class rank and scholarship offers. When clients ask, “Where do we even start with college money?”, academic merit is often the most impactful answer. These scholarships can offset tuition without relying on athletic recruiting.

FAFSA planning is essential, not optional. Filing early opens access to grants, school-based aid, and student loan options that reduce long-term debt. Mike dispels the myth that "FAFSA won’t help higher earners" and explains why every family must submit it. This context helps Realtors answer questions like, “Will student loans limit our ability to buy a home later?”

Catey describes her path through D1, D2, D3, NAIA, and JUCO evaluations—and why recruiting requires consistent effort, highlight videos, and campus visits. Athletic scholarships aren’t guaranteed, so families need to understand the true landscape. Realtors supporting sports families can help them think through travel costs, schedules, and timelines that influence both college planning and future home decisions.

Mike explains why small local scholarships—often $500 to $2,500—are the easiest money families overlook. Catey highlights how Bold.org, Niche, and AI tools simplify the search and even help refine essays. For Realtors asked, “What else can we do to find college money quickly?”, these tools provide real direction. Small awards add up fast and meaningfully lower...

Fed cuts rates, mortgage rates climb. If you’re wondering how that math works, you’re not alone. In this week’s episode, Mike Mills untangles the real connection between the Fed, mortgage-backed securities, and why housing affordability in Texas still isn’t catching a break.

The Fed rate cut reaction caught everyone off guard—rates went down at the central bank but up for homebuyers. In this episode, Mike Mills explains why mortgage rates often move opposite of Fed cuts, breaking down how mortgage-backed securities (MBS), tariffs, and investor sentiment actually drive the market. Realtors will learn how to communicate these changes clearly to clients, structure deals with buydowns and concessions, and anticipate what the next Fed meeting might bring. Mike also dives into Texas housing turnover trends, new Fannie Mae credit score updates, and how to automate your real estate database with AI tools to stay ahead in 2025’s unpredictable market.

1. Fed Cuts Don’t Equal Lower Mortgage Rates

The Fed rate cut reaction shows that mortgage rates follow the bond market, not the Fed’s overnight rate. When mortgage-backed securities fall in price, mortgage rates rise—even after a cut. Realtors should help clients understand this distinction to set realistic expectations and avoid confusion when rates move in the opposite direction of the headlines.

2. Tariffs and Inflation Are Keeping Rates Volatile

Trade tensions and tariff headlines are pushing Treasury yields higher, making mortgage-backed securities less attractive to investors. This inflation pressure keeps mortgage rate volatility high. Agents should prepare clients for short-term fluctuations and focus on long-term strategy over daily rate swings.

3. Texas Housing Market Is Frozen but Stable

Turnover is slowing, but home prices in Texas remain remarkably steady. This means less movement but not a crash. For Realtors, it’s all about pricing accurately from the start, using AI-powered market research to set expectations with sellers and target serious buyers who are ready to act.

4. New Fannie Mae Credit Score Rules Expand Access

As of November 16, 2025, Fannie Mae is removing the 620 minimum credit score for DU-approved loans. This expands opportunities for borrowers with lower scores—if their overall profile is strong. Realtors can leverage this update when helping clients who may have been previously sidelined by traditional credit score limits.

5. Your Database Is the Real Game-Changer

Social platforms can change the rules overnight, but your email list and CRM are assets you control. Mike shares a practical AI workflow for Realtors to organize, tag, and automate their contact database—turning passive leads into real conversations and long-term clients.

Podcast Website → https://www.thetexasrealestateandfinancepodcast.com

Linktree (All Links + Resources) → https://linktr.ee/mikemillsmortgage

Referenced Data & Tools:

• Mortgage News Daily – Daily mortgage rate index and MBS updates →