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Fed holds rates steady, three voters backed a hike

Zillow Research says mortgage rates are expected to ease to 6.4% by year-end, but affordability could worsen if the Fed’s more hawkish bloc prevails.

Reported · Written up by our desk · Mortgages

Zillow Research reports the Federal Reserve held the federal funds rate steady, but the decision reflected internal division: three voters preferred a rate hike while the rest supported keeping policy unchanged.

The housing research firm also points to an outlook for mortgage rates, forecasting they may fall only to 6.4% by year-end, shifting the story from a spring and early summer affordability boost to a potential headwind for buyers.

Zillow Research frames the key risk as whether rates remain elevated longer due to pressure from the policymakers who favored tightening, which could limit how quickly mortgage costs improve.

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