Why the Fed's Interest Rate Pause Could Bring Mortgage Rate Volatility

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 voted to extend a pause on interest rate cuts for a third consecutive time this year. As markets face lingering inflation, heightened recession risks and overall uncertainty, holding rates steady gives the central bank time to assess the impact of President Donald Trump's erratic tariff campaign, immigration policies and federal cutbacks. Interest rate cuts won't come until July at the earliest, though Fed Chair Jerome Powell won't commit to a timeframe. "The hard data on inflation and unemployment will continue to drive interest rates, including mortgage rates, from one end of a trading range to the other, with only a slight downward trend in mortgage rates over the remainder of 2025," said Mike Fratantoni, chief economist at the Mortgage Bankers Association, in a statement following the decision. For the rest of the year, mortga ... Read full article.