Mortgage rates remained unchanged this week since the Fed maintained its current policy

Mortgage Rates Hold Steady as Fed Maintains Interest Levels

This week, mortgage rates remained largely unchanged after the Federal Reserve opted to keep its key interest rates stable. Investors are now anticipating that this pause in rate changes could last for some time.

According to Freddie Mac, the average rate for a 30-year fixed mortgage stood at 6.1% as of Wednesday, a slight increase from last week's 6.09%. Meanwhile, the average 15-year fixed mortgage rate edged up to 5.49% from 5.44%.

After dipping earlier in January, mortgage rates have now leveled off, hovering around the same range seen throughout much of the autumn.

Jiayi Xu, an economist at Realtor.com, commented, “Although the 30-year mortgage rate has settled into the low 6% range, borrowing costs are still high enough to impact affordability. As a result, many homeowners are choosing not to list their properties, which is limiting the number of new homes on the market.”

While the Federal Reserve does not set mortgage rates directly, its decisions and guidance on interest rates have a significant influence on them.

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On Wednesday, the central bank kept its benchmark rates unchanged after three consecutive quarter-point reductions. The Fed noted that inflation is still “somewhat elevated,” but the labor market appears to be stabilizing. Fed Chair Jerome Powell emphasized that future rate decisions will be made on a meeting-by-meeting basis.

Mike Fratantoni, chief economist at the Mortgage Bankers Association, stated that the group continues to expect mortgage rates to remain between 6% and 6.5% for the foreseeable future.

“Our outlook for mortgage rates remains the same after this meeting,” Fratantoni said. “We believe these rates will support a somewhat stronger spring housing market compared to last year, though we do not anticipate a dramatic surge.”

Claire Boston is a Senior Reporter at Yahoo Finance who covers topics related to housing, mortgages, and home insurance.

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