Mortgage Rates May Stick Around—Here’s Why

📌 Key Takeaways

• 📉 The Fed held rates steady but hinted at fewer cuts this year.
• 💸 That means mortgage rates may stay higher for longer.
• 📊 Rates are still moving daily, so shopping around matters more than ever.

💬 Summary

Mortgage rates won’t fall as fast as many had hoped, thanks to the Fed’s cautious tone on inflation.

🚨 Don’t Count on Quick Relief

Yesterday, the Federal Reserve chose to leave interest rates unchanged. But here’s the real headline: they’re only expecting one rate cut this year instead of the three they talked about earlier in 2024. That cools off hopes for cheaper loans anytime soon.

📈 What That Means for Mortgage Rates

Mortgage rates don’t move in lockstep with the Fed’s decision, but they take cues. Since the Fed’s main job is to fight inflation, mortgage lenders watch closely. If the Fed is staying cautious, lenders are less likely to lower rates. Bottom line? Expect mortgage rates to stick around the 6.5%–7.5% range for a bit.

💡 Should You Wait to Buy?

Waiting for big rate drops might not pay off. Even the latest Freddie Mac average shows only slight movement week to week. If the right house pops up and your budget works, it might still be the right time.

🛍️ Why It Still Pays to Shop Around

Even in a high-rate environment, comparing lenders could save you thousands. According to a CFPB study, borrowers who compare multiple quotes often get much better deals.