Will Tomorrow's Fed Decision Matter for Mortgage Rates? It's Complicated

There's a lot of uncertainty in today's economy, but one thing is certain: The Federal Reserve isn't planning to lower interest rates before the spring homebuying season. If you're in the market for a new home, average mortgage rates are projected to stay above 6% for a while. "While the Fed certainly can influence mortgage rates, investors are the true movers." Ali Wolf, chief economist at Zonda and New Home Source At its meeting on March 19, the Fed is expected to continue its pause on interest rate cuts to monitor the economic impact of President Trump's tariffs, immigration policies and federal layoffs. That would keep mortgage interest rates — which are sensitive to fiscal policy and economic growth — higher for longer. "Borrowing costs are important to prospective homebuyers," said Ali Wolf, chief economist at Zonda and New Home Source. Cheaper interest rates make financing a home more appealing, opening up the market to first-time buyers as well as existing homeowners seeking ... Read full article.