Fed Pauses Interest Rate Cuts. Where Do Mortgage Rates Go From Here?

Today, the Federal Reserve voted to extend a pause on rate cuts for a second consecutive time this year. The bottom line is there's a lot of uncertainty in today's economy. Holding rates steady gives the central bank time to assess the impact of President Donald Trump's tariffs, immigration policies and federal layoffs, as the markets face lingering inflation and heightened recession risks. The Fed's pause could keep mortgage interest rates — which are sensitive to fiscal policy and economic growth — higher for longer. 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 For better or worse, the Fed's relationship to home loan rates isn't direct or immediate. "While the Fed certainly can influence mortgage rates, investors are the true movers," said Ali Wolf, chief economist at Zonda and N ... Read full article.