At its first policy meeting of 2025, the Federal Reserve chose to maintain the Fed funds rate – which is the amount banks pay to borrow money from each other overnight – at 4.25% to 4.50%.
This decision reflects the Fed’s assessment that while the economy has continued to expand at a solid pace, with unemployment and labor conditions stabilizing to lower levels, inflation remains somewhat elevated.
For the real estate sector, holding rates steady suggests that borrowing costs, including mortgage rates, are unlikely to decrease in the immediate future. While the Fed has indicated a cautious approach to future rate adjustments, any potential rates are expected to be gradual.
What does the skip in Fed rate hikes mean to mortgage rates?
The best way to navigate interest rates on home loans is to speak with a Homeowners Licensed Mortgage Professional about current market conditions. In any market situation, we’re here to help you understand the rates that are available to you and get the best possible pricing on your next home loan.
