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Fed holds rates steady, but three voters back a hike

Zillow Research projects mortgage rates could end 2026 near 6.4%, shifting the market from an affordability tailwind in early 2026 to a potential headwind later in the year.

Reported · Written up by our desk · Mortgages

Zillow Research says the Federal Reserve held the federal funds rate steady, but the decision was split, with three policymakers voting in favor of a rate hike.

The housing research firm links the outlook for home affordability to the path of mortgage rates, noting that buyers saw an affordability tailwind in the first half of 2026.

Zillow Research also points to a slower shift in mortgage rates, projecting they may fall only to about 6.4% by year-end, which it frames as a possible headwind compared with earlier gains.

The update asks what comes next for rates following the divided Fed vote, as housing market momentum depends on how quickly borrowing costs decline.

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