Mortgage Rates Suffer Blow in Housing Market Update

The Federal Reserve on Wednesday said it anticipates fewer interest rate cuts than it predicted earlier in the year, spurring experts' worries over the cost of borrowing—including home loans—for the foreseeable future.In March, the central bank had forecast three rate cuts this year. But three months later, the Fed signaled there could be at least one less move toward reducing borrowing costs from the central bank, its summary of economic projections showed.

'Their expectation shifted higher not just for rates in 2024, but also in 2025 and in the longer run. So that does put some upward pressure on mortgage rates,' Danielle Hale, Realtor.com's chief economist, told Newsweek. Hale suggested that policymakers may have not fully accounted for the inflation readings that came in earlier on Wednesday, and that the data on prices will likely shape where the central bank ends up on borrowing costs.

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