Federal Reserve Keeps Interest Rates Steady—but Signals First Cut in 4 Years Could Come in September

Mortgage rates are expected to remain high through summer, but changes may occur in the fall. The Federal Reserve has kept its interest rate steady at 5.25% to 5.5%, indicating it won't lower borrowing costs until more confidence is gained. Despite a stalled housing investment, resilient demand persists. Many investors anticipate a Fed rate cut in September due to rising unemployment and slowing inflation. Currently, mortgage rates average 6.78% for 30-year fixed loans. A decrease in rates could encourage more homeowners to list their properties, addressing the ongoing housing shortage.