Weekly Mortgage Predictions: Rates Above 6.7% as Fed Weighs Economic Uncertainty

The Federal Reserve is expected to hold interest rates steady at its monetary policy meeting this Wednesday — though sticky inflation, increased unemployment and slowing economic growth could force the central bank to cut rates in late spring or early summer. Reductions to the benchmark federal funds rate will indirectly lower other types of financing and consumer borrowing rates, like mortgages, over the long term. Investors are holding out for the Fed's interest rate forecast tomorrow, while concerns over a potential recession and uncertain trade policies keep pressure on financial markets. Mortgage rates, linked to the bond market, have been wavering since late January due to President Trump's on-and-off-again tariffs, stock market swings and geopolitical uncertainty. Still, over the last week, they've remained relatively stable, hovering around 6.7% on average for a 30-year fixed home loan, according to Bankrate data. Fannie Mae projects mortgage rates to stay above 6.5% for the ... Read full article.