Housing experts say mortgage rates are likely to hover in the 7 percent range in May, amid elevated inflation that is keeping the Federal Reserve from reducing borrowing costs.The high cost of home loans may keep buyers at bay as they await the decline of rates before they can make the leap toward homeownership.The Federal Reserve raised interest rates starting in March 2022 to its current two-decade high of 5.25 to 5.5 percent, a move geared to fight soaring inflation.
'Buyers are still likely to be waiting for rates to fall but the key to the trajectory of rates will be how inflation performs over the coming months, said Holden Lewis, a home and mortgage expert at NerdWallet.'Inflation remains stubbornly above the Fed's target of 2 , and mortgage rates won't fall significantly until the inflation rate consistently drops for multiple months in a row,' Lewis told Newsweek.