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Fed signals more rate hikes, keeping mortgage rates elevated
The Fed unanimously approved a 25 bps hike and projected another hike or two through 2027, which Redfin says is likely to leave mortgage rates high.
Redfin News says mortgage rates are likely to stay elevated after the Fed delivered a 25 bps rate hike as expected and signaled additional tightening is still possible.
According to Redfin News, the Federal Open Market Committee voted unanimously for the move and included projections for another hike or two through 2027, while remarks from Fed Chairman Warsh suggested the path could be more aggressive than the projections imply.
Redfin News also links the outlook for mortgage rates to what comes next on inflation and other near term market drivers, including expected rate guidance and incoming economic data.
With the direction of policy still uncertain, Redfin News expects mortgage rate volatility as the Fed continues to communicate during upcoming meetings and data releases.