Fed Pauses Rate Hikes Again, Opening Door for Lower Mortgage Rates
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The Federal Reserve paused interest rate hikes for the third consecutive time, deciding not to raise rates despite inflation still being above 2%.
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Pausing rate hikes could allow mortgage rates to continue falling, as they did after the previous two pauses. Rates are already down since early November.
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Fed Chair Jerome Powell projected interest rate cuts could happen in 2024, which would further reduce mortgage rates from current levels.
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Refinancing rates have also declined recently and could drop further due to the pause and potential 2024 cuts.
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Lower rates could help buyers who were previously priced out of the market and give relief to recent buyers who financed at higher rates.