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Mortgage Rates Steady Amid Economic Uncertainty
2025-05-09 12:29:09
Finance
Economy
Markets

Mortgage Rates Steady Amid Economic Uncertainty

Mortgage rates remain stable at 6.76%, with 15-year rates at 5.89%. The Federal Reserve's decision to keep interest rates unchanged reflects a strong job market amidst economic uncertainty.

This stability has encouraged an uptick in mortgage applications, despite previous high rates discouraging buyers and sellers. Many potential homeowners, particularly younger generations, are postponing purchases, hoping for lower rates.

Predictions suggest a possible decline in rates, which could revive market activity. However, high home prices and limited supply may keep prices elevated.

The Fed's careful monitoring of economic indicators will guide future decisions, impacting both the housing market and broader economic sentiment.

Related news on that topic:

Mortgage Rates on the Rise Amid Fed Anticipation

Mortgage rates have seen a slight increase as the Federal Reserve approaches its upcoming meeting. Currently, the 30-year fixed rate stands at 6.75%, while the 15-year fixed rate is at 5.99%. Adjustable-rate options are also affected, reflecting a general upward trend. Despite expectations for the Fed to maintain current rates, any dovish hints from Chair Jerome Powell could signal future reductions. Analysts at Morgan Stanley forecast a gradual decline in mortgage rates through 2026, influenced by falling treasury yields. This potential easing could invigorate the housing market and boost economic activity. However, uncertainties in the economy may temper the anticipated recovery in housing demand.

Fed Holds Firm Amid Economic Uncertainty and Political Pressure

The U.S. Federal Reserve has decided to keep interest rates steady at 4.25% to 4.5%, despite significant pressure from President Trump for a rate cut. This decision reflects the Fed's cautious approach to balancing economic growth with rising risks of inflation and unemployment, driven partly by tariffs imposed by the Trump administration. Fed Chair Jerome Powell emphasized the central bank's independence, noting the importance of a flexible monetary policy that adapts to changing economic conditions. The Fed's decision was unanimous, highlighting a commitment to maintaining stability amid economic uncertainties, including the potential impacts of ongoing trade tensions. While the economy continues to expand, Powell warned of increasing risks associated with higher unemployment and persistent inflation. The Fed remains vigilant, ready to act swiftly should new economic data signal a need for policy adjustments. Despite robust job growth and steady consumer spending, the Fed is closely monitoring the long-term effects of tariffs on inflation and economic growth. The central bank reaffirmed its goals of maximum employment and a 2% inflation target, prepared to alter its stance if necessary. President Trump's repeated calls for lower rates and threats to remove Powell have not swayed the Fed's course. Powell's resolve has garnered international support, with colleagues praising his steadfastness in the face of political pressure. As the Fed navigates these complex challenges, its decisions will be crucial for the future trajectory of the U.S. economy.

Read 3 more recent news on this topic

The press radar on this topic:

Yahoo Finance
8. Mai 2025 um 16:01

Mortgage rates hold steady after few surprises from labor data, Fed meeting

Mortgage rates remained steady this week at 6.76%, with 15-year rates slightly lower at 5.89%. The Federal Reserve left interest rates unchanged, citing economic uncertainty but a strong job market. Mortgage rates are not directly controlled by the Fed but move in response to expectations about future policy. Steady rates helped boost mortgage applications for both home purchases and refinancing last week.
The Street
15. Mai 2025 um 10:00

Another pause in Fed interest rate cuts may disappoint homebuyers TheStreet Daily Newsletter

High mortgage rates, which surged from 3.5% to nearly 7% in 2022, have negatively impacted the housing market, discouraging both buyers and sellers. The Federal Reserve has maintained the federal funds rate at 4.25% to 4.50% throughout the year, with no immediate cuts planned until more economic data is available. As a result, many potential homebuyers, particularly younger generations, are delaying purchases, with 69% of Gen Z renters and 74% of Millennial renters waiting for lower rates. The..
The Street
14. Mai 2025 um 15:06

Dave Ramsey predicts major mortgage rate changes are coming soon TheStreet Daily Newsletter

Dave Ramsey predicts that mortgage rates may decline soon, potentially sparking renewed activity in the housing market. Currently, high home prices and elevated mortgage rates are keeping many buyers sidelined, with rates expected to hover around 6% by the end of 2026. While a slight drop in rates could motivate buyers to re-enter the market, Ramsey cautions that home prices are unlikely to fall significantly due to limited supply. Ongoing concerns such as inflation and trade tensions have also..
The Street
9. Mai 2025 um 15:45

Markets enjoy rally as Fed keeps rate unchanged

The Federal Reserve decided to hold interest rates unchanged at 4.25%-4.50%, citing solid economic growth but increasing uncertainty. Crypto markets remained steady after the decision, which was seen as slightly more accommodative as the Fed will slow the reduction of its balance sheet. The Fed emphasized its data-dependent approach and commitment to maximum employment and 2% inflation. The decision came amid ongoing U.S.-China trade tensions, which have increased economic uncertainty. The Fed's..
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