Mortgage Rate Forecast for May: Can Rates Fall Without Fed Cuts?

Mortgage rates can change daily and even hourly. Tharon Green/CNET Long-term housing market predictions have been clouded by economic uncertainty under the Trump administration's trade and austerity measures. Since early spring, average mortgage rates for 30-year fixed loans have been swinging between 6.5% and 7%. Some days are especially volatile in the mortgage market, while others are steadier. Despite concerns over a potential recession and pressure from the White House to reduce interest rates, the Federal Reserve isn't planning to cut rates at its May 6-7 policy meeting this week. "The Fed appears inclined to maintain its cautious, wait-and-see stance," said Odeta Kushi, deputy chief economist at First American Financial Corporation. Given the contentious debates over tariffs and Trump's political posturing against Fed Chairman Jerome Powell, investors are divided over the central bank’s projected path of rate cuts in 2025. Right now, markets are anticipating anywhere between ... Read full article.