The Fed Won't Cut Rates Tomorrow. But Mortgage Rates Could Still Spiral

The Fed's interest rate adjustments matter for the housing market, just not in the way you think. Saifulasmee Chede/Getty Images/CNET The Federal Reserve is almost certain to hold interest rates steady on Wednesday, despite President Trump's demand that they be slashed immediately. If you're in the market for a home, you might be wondering what that means for mortgage rates. When the Fed adjusts its benchmark interest rate, interest rates on savings accounts and short-term loan vehicles follow quickly. Long-term rates like mortgages, however, take their cues from the broader economic outlook and fiscal indicators rather than directly from policymakers' moves. Given today's turbulent political and economic environment, mortgage rates have the potential to wildly fluctuate up or down — or they could stay relatively steady in the 6% to 7% range. "The Fed doesn't set mortgage rates, but it sets the tone," said Nicole Rueth of The Rueth Team with Movement Mortgage. Mortgage rates are ... Read full article.