What to expect from mortgage rates after the Fed meeting

Will mortgage rates go down? It depends. Trying to time the market for the lowest rates is tough — instead, focus on what you can control.

Transcript

00:00In its March meeting for the second time in a row,

00:03the Federal Open Market Committee decided to leave our policy interest rate unchanged.

00:07So what does that mean if you want to buy a home, refinance a home, or take out a HELOC or home equity loan?

00:12I'll tell you.

00:13When the Fed changes interest rates, when it's really changing is the federal funds rate.

00:17The federal funds rate does not directly change mortgage rates, but it creates a ripple effect

00:22that affects the price you pay to borrow money for all kinds of things, including mortgages.

00:26But the federal funds rate is not the only factor that affects mortgage rates.

00:30Another big one is the economy.

00:32And there is a lot of economic uncertainty right now,

00:35which is why we've seen some volatility in mortgage rates in recent weeks.

00:38Overall, mortgages are still expected to ease at some point in 2025,

00:43but it's impossible to say how much or when.

00:46So let's zoom in on the mortgage rates available to you.

00:50These are affected by some factors that are out of your control, the economy,

00:54and some factors that are more personal, like your credit score, your down payment, and your existing debt.

01:00Right now, you can focus on the things that are in your control.

01:03Know your credit score and work on improving it.

01:05Pay off as much debt as you can.

01:07Save for a down payment.

01:09And make sure to shop around.

01:11Different mortgage lenders may offer different rates.

01:13And if you're a first-time homebuyer, look into programs in your state.

01:17Buying a home is rarely affordable, but mortgage rates don't have to stand in your way.

01:24U.S. Money Reserve