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

The Federal Reserve has decided to pause interest rate cuts, keeping the federal funds rate steady at 5.25% to 5.5%. This decision comes amidst a backdrop of economic uncertainty, with inflation still above the Fed's 2% target but showing signs of cooling. Mortgage rates, which are influenced by the Fed's actions but not directly set by them, have been volatile. Currently, the average 30-year fixed mortgage rate is around 7.23%, according to Freddie Mac. Analysts suggest that while the Fed's pause might not immediately lower mortgage rates, it could stabilize them, providing some predictability for potential homebuyers. However, the future trajectory of mortgage rates will also depend on broader economic indicators like employment data, inflation rates, and global economic conditions. Homebuyers are advised to consider locking in rates if they find a favorable deal, given the unpredictability of future rate movements.

Read the Full CNET Article at:
[ https://www.cnet.com/personal-finance/fed-pauses-interest-rate-cuts-where-do-mortgage-rates-go-from-here/ ]