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Fed holds rates steady as some policymakers backed a hike

Zillow Research expects the 30-year mortgage rate to fall to 6.4% by year-end, but says the affordability tailwind seen in early 2026 could fade.

Reported · Written up by our desk · Mortgages

Zillow Research reports that the Federal Reserve held the federal funds rate steady, but the decision was split, with three policymakers preferring a hike.

The split matters for housing demand because Zillow Research links mortgage rate expectations to changes in affordability for buyers over the course of 2026.

Zillow Research said mortgage rates are expected to decline only to 6.4% by year-end, noting that the affordability tailwind buyers benefited from in the first half of 2026 may turn into a headwind later in the year.

In its outlook on what comes next for rates, Zillow Research frames the near-term trajectory as closely tied to the Fed's remaining debate over whether further tightening is needed.

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