In its May meeting, the Federal Reserve kept interest rates steady for the third time this year. While many are hoping for a rate cut soon, new tariffs and inflation concerns may delay rate changes from the Fed. So what does that mean for current mortgage rates?
This video breaks down how the Fed's decision could affect mortgage rates and what prospective homebuyers and refinancers can expect in the months ahead. We also explore how to position yourself for the best mortgage rates available, whether you're buying your first home, refinancing, or exploring HELOCs or home equity loans.
This video breaks down how the Fed's decision could affect mortgage rates and what prospective homebuyers and refinancers can expect in the months ahead. We also explore how to position yourself for the best mortgage rates available, whether you're buying your first home, refinancing, or exploring HELOCs or home equity loans.
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00:00In May, for the third time this year, the Fed decided to leave our policy interest rate
00:05unchanged. Experts had forecast rates to drop in 2025, expecting that inflation would ease
00:10and the Fed would start cutting the federal funds rate. However, that hasn't happened yet.
00:15If we do get a rate cut this summer, mortgage rates could ease somewhat in the coming months.
00:19But that is still a big if. First, we have to wait and see how tariffs end up affecting the
00:24economy. Those tariffs are expected to push inflation back up, and Fed officials have
00:29indicated they don't want to cut rates unless the economy starts to crack. Scan this QR code or
00:34click the link in the description of this video to see today's mortgage rates.
00:37If you want to learn more about how interest rates could affect your mortgage,
00:41stick around. They're affected by some factors that are out of your control,
00:45like the federal funds rate and the overall economy. But rates are also affected by some
00:49factors that are more personal, like your credit score, your down payment, and your existing debt.
00:55Right now, you can focus on the things that are in your control.
00:58Know your credit score and work on improving it. Pay off as much existing debt as you can.
01:03Save up for a down payment. And if you're a first-time home buyer,
01:07look into programs available in your state. And whether you're looking for a mortgage,
01:11a HELOC, a home equity loan, or you want to refinance, make sure you shop around.
01:16Different lenders may offer different rates. Buying or refinancing a home is rarely affordable,
01:21but mortgage rates don't have to stand in your way.