Real estate mortgage expectations this week: The Federal Reserve maintains fixed rates amid economic uncertainty

the Federal Reserve The interest rates preserved are fixed in its monetary policy meeting this week – despite the sticky inflation, the increase in unemployment and the slow economic growth can be forced to Central Bank to reduce prices In late spring or early summer.

While the recession, and the unfinished commercial policies are afraid to pressure the financial markets, the main question for investors is how the Trump administration management and definitions are the economic definitions. It affects the Federal Reserve Bank Function price expectations.

Jerome Powell, Chairman of the Federal Reserve, said during The press conference on Wednesday. “We do not need to be in a hurry to control our position on politics, and we are in a good position to wait for more clarity.”

The Federal Reserve is assigned to maintain the maximum amount of employment and contain inflation. A The slow economy usually calls for interest rates To stimulate growth, but lowering severe speed rates can provide price growth when inflation is still higher than the target.

However, the Federal Reserve, which sets a short -term standard interest rate for lenders, only Indirectly affects the mortgage market. In 2024, the central bank reduced interest rates three times, but mortgage Prices have not decreased.

This is because the rates are mainly driven by movement in the bond market, specifically on the return of the treasury for a period of 10 years. Bond proceeds and interest rates rise or decrease depending on how New economic data Market speculation transformations and risk evaluation. Until the impact of management policies is more clear, mortgage rates will continue to volatility.

Read more: How the Federal Reserve decision affects the mortgage rates

What is the path of mortgage rates now?

Mortgage Fanni More Real Estate Prices for survival above 6.5 % For a better part of the year. However, lenders build their rates on a set of factors, and no expectations have been determined in the stone. Given the unstable nature of the economy, any sign of risks or turmoil can reduce bond returns and affect the course of mortgage rates.

If the economic shrinkage is likely to start, for example, mortgage rates may begin to decrease, but it will need to decrease more than 5.5 % to bring buyers to the market, according to what it mentioned. Alex ThomasJohn Burns Research and Consulting Service.

While household loans rates are the cheapest positive on the ability to afford housing costs, the fragile economy can maintain the freezing of the housing market. “If low mortgage rates are the result of stagnation, the demand for housing may remain silent,” Thomas said.

The potential housing buyers who were Waiting for a decrease in mortgage rates Over the past few years, you may need to adapt to the “new natural” in the mortgage market, with rates between 5 % and 7 % in the long run. This may seem high compared to iron 2 % rates From the era of the epidemic. But experts say that getting less than 3 % on real estate mortgage is unlikely without severe economic shrinkage. Since the 1970s, the average average average A stable mortgage for 30 years It was about 7 %.

today The housing market cannot be affected It is not just a result of the high mortgage rates. A Long -term housingThe prices of houses are expensive and the loss of purchasing energy due to inflation have stopped buyers over the past few years.

Tips for housing buyers today

with The spring season for the house When rapidly approaching, potential housing buyers are left wondering whether the market will enter or continue to wait on the margin. It is never good to rush to Buy a house Without creating a clear budget.

Here are what experts recommend before buying a house:

💰 Build your credit degree. Your credit degree will help determine whether you are eligible to get a mortgage and at any interest rate. A Credit From 740 or above it will help you qualify for a lower rate.

💰 Except for a larger first batch. greater Premium It allows you to get a smaller real estate mortgage and get a lower interest rate than your lender. If you can bear it, the batch of at least 20 % will remove the insurance on the private mortgage.

💰 Shop the mortgage lenders. It can help compare loans from multiple mortgage lenders Negotiate a better rate. Experts recommend obtaining at least two estimates of loans from two different lenders.

💰 Consider real estate mortgage points. You can get a lower mortgage rate through purchase Mortgage pointsWith each point costs 1 % of the total loan amount. One mortgage point is equal to a decrease of 0.25 % in the mortgage rate.

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