Fannie Mae predicts crucial mortgage rate changes are coming soon
Homebuyers are left with lingering questions as mortgage rate expectations falter yet again.
When inflation surged in 2022, the Federal Reserve raised interest rates to increase the cost of borrowing and deter spending. The federal funds rate and mortgage rates remained elevated for years while the Fed worked to suppress inflation, until Fed chair Jerome Powell unveiled plans for consistent rate cuts last September.
Economists and housing experts expected mortgage rates to follow suit and drop as interest rates decreased, but economic uncertainty, volatile financial markets, and a precarious political climate have kept rates high.
