Fed raised interest rates again, but could pause hikes. Will mortgage rates stay above 6% much longer?

The U.S. Federal Reserve raised interest rates for the tenth time in a row, but signaled a pause in future hikes.On Wednesday, the central bank raised its benchmark interest rate by a quarter percentage point. While it signaled that it was ready to pause, the current economic climate is... The U.S. Federal Reserve raised interest rates for the tenth time in a row, but signaled a pause in future hikes.On Wednesday, the central bank raised its benchmark interest rate by a quarter percentage point.

Economists expect rates to keep falling Economists agree that mortgage rates will fall over the course of this year, and next. “Nevertheless, homebuyers have been responsive to declining rates since November, while sellers have stayed on the sidelines,” she added. The Mortgage Bankers Association also expects the 30-year mortgage rate to end the year close to 5.5%.

There were fewer for-sale listings this April compared to last year, a separate report from Realtor.com said. The inventory of homes for sale in April dropped 21.3% as compared to 2022. The median listing price rose slightly to $430,000 from $424,000 the previous month. “This will likely take a couple more years to play out,” he added, “as potential sellers are reluctant to sell their homes for obvious reasons. These price declines are necessary to sufficiently restore housing affordability.”Overall, the real-estate industry was not pleased with the Fed’s move to raise rates. “The latest interest-rate hike by the Federal Reserve is unnecessary and harmful,” Lawrence Yun, chief economist at the National Association of Realtors, said in a statement.

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