March 2025 Fed Meeting: Mortgage Rates Improve & Future Outlook
The Fed held interest rates steady – No immediate rate hikes, which keeps borrowing costs stable.
Interest Rates have improved by nearly .5% since the New Year averaging 6.5-6.75!
Long-term interest rates improved – Good news for homebuyers and refinancers, as mortgage rates are influenced by long-term bond yields.
The Fed is slowing its balance sheet reduction – This move helps prevent Treasury yields from rising, which historically leads to lower mortgage rates.
Markets expect the first rate cut in June – If this happens, it could make home loans more affordable.
Inflation concerns are easing – The Fed believes any impact from tariffs on inflation will be short-lived, reducing uncertainty in the market.
30-year mortgage rates are currently at 6.67% – While still higher than in previous years, rates have improved, and further reductions are possible.
Bond market movements will dictate future rate changes – If bonds push past key resistance levels, mortgage rates could drop further.
OHA HOT TAKE:
If you’ve been waiting for interest rates to improve before buying or refinancing, now is the time to start paying attention. With rates stabilizing and potential cuts ahead, the market is becoming more favorable for homebuyers. Let’s chat about how these changes could work in your favor!
