Mortgage rates were little changed this week as the Federal Reserve held benchmark interest rates steady and investors braced for a possible extended pause.
The average 30-year mortgage rate was 6.1% as of Wednesday, according to Freddie Mac data, up from 6.09% the week before. The average 15-year mortgage rate was 5.49%, up from 5.44%.
More information: How to get the best mortgage rates right now
After a drop in early January, rates have stabilized at levels close to where they spent much of the fall.
“The 30-year mortgage rate has dropped to the low 6% range, but borrowing costs remain high enough to strain affordability and keep many homeowners on the sidelines, limiting new deals,” Realtor.com economist Jiayi Xu said in a statement.
The Federal Reserve does not directly control mortgage rates, but they are influenced by its interest rate decisions and its communications about the future path of rates.
The central bank held benchmark rates steady Wednesday after three consecutive quarter-point cuts, noting that while inflation remains “somewhat elevated,” the labor market is showing signs of stabilization. Speaking to reporters after the decision, Fed Chair Jerome Powell reiterated that authorities would take a meeting-by-meeting approach to setting rates.
Mortgage Bankers Association Chief Economist Mike Fratantoni said in a statement that after the meeting, the trade group still expects mortgage rates to remain in the 6% to 6.5% range for the “foreseeable future.”
“News from this meeting does not change our forecast for mortgage rates,” Fratantoni said. “We expect this level of rates to help support a somewhat stronger spring housing market than last year, but not a spectacular year.”
Read more: Is now a good time to buy a house?
claire boston He is a senior reporter for Yahoo Finance covering housing, mortgages and home insurance.
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