The Federal Reserve cut interest rates by a quarter-point on Thursday, even as mortgage rates have been rising since September.
The Federal Reserve cut its key interest rate by a quarter-point on Thursday as the central bank stuck to its decided course of action despite mortgage rates inching higher week after week.It was the second cut implemented by the Fed after finally reversing its rate hike strategy in September, when it cut its key interest rate by half a percentage point, its biggest cut since March 2020. The decision was backed by falling mortgage rates and consistently lower inflation.
'Rates are currently being guided by stronger-than-expected economic data, fears of inflationary policies surrounding tariffs and immigration with the new administration, and macro inflation fears specifically surrounding a potential widespread war.'Alvarez expects rates to continue to come down in 2025, 'but we might just have to be a little bit patient as to when, as it's never a straight run down,' she said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Weekly mortgage demand tanks 17%, after interest rates hit the highest level since AugustMortgage interest rates rose last week for the third straight week, hitting the highest level since August.
Read more »
Fact Check Team: What level of impact do interest rate cuts have on mortgage rates?The September jobs report showed significant job growth, which led investors to believe the economy was gaining strength.
Read more »
Mortgage Rates Rise Despite Hopes for Federal Reserve CutsDespite anticipation of interest rate cuts from the Federal Reserve to lower mortgage rates, home buyers are now facing even higher rates. This unexpected surge follows a brief period where mortgage rates were declining, reaching their lowest point in over two years.
Read more »
Homebuyers Face Higher Mortgage Rates Despite Fed's ActionsDespite hopes for lower mortgage rates, homebuyers are now facing even higher rates after the Federal Reserve increased interest rates in response to strong job growth.
Read more »
Mortgage rates continue to climb despite cuts by the Fed: Here’s whyMany Americans have been priced out of purchasing a home or making a move for years now amid elevated mortgage rates, sky-high home prices, and squeezed budgets due to inflation.
Read more »
Mortgage rates jump, slamming homebuyers despite Fed's outsize interest rate cutsThe average 30-year fixed mortgage rate has increased for the third week in a row to 6.5%, according to Freddie Mac. That rate is a quarter-point higher than it was two weeks ago.
Read more »