Mortgage Interest Rates Forecast

Mortgage interest rates are likely to stay near recent lows after the Federal Reserve voted to keep the federal funds rate unchanged, ending its three-meeting streak of rate cuts. The move reflects cautious confidence: Fed officials are acknowledging uncertainty while signaling that the economy looks stable enough to wait. Because mortgage rates had already been drifting lower from late summer into the new year, this week’s decision is unlikely to move borrowing costs on its own.

What could still move mortgage rates? Any new details around a potential federal purchase of mortgage-backed securities. Earlier talk of large-scale MBS buying helped push rates to their lowest levels in years. That initial drop has faded, but rates are still hovering around 6%. If clearer plans or an actual purchase emerge, rates could dip again, opening a narrow window for homeowners looking to refinance.

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February mortgage rates forecast

With the Fed signaling patience for now, mortgage rates may drift rather than make a sharp move in either direction. Any fresh momentum is more likely to come from signals around mortgage-backed securities than from another move on the fed funds rate.

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