As of Tuesday, the average rate for 30-year fixed mortgages is down to 7.07%, while 15-year fixed loans average 7.23%. Although inflation has decreased from its peak of 9.1% in June 2022, it remains above the Federal Reserve's 2% target. The Fed's recent statement lacks reference to this target, signaling lingering inflation concerns. Economists suggest there's little chance of rate cuts until mid-2025 unless significant changes in inflation or labor market data arise, as highlighted by the weak January jobs report adding to the Fed's cautious stance.
The Fed's approach remains cautious, with inflation not yet meeting its 2% target, keeping rate cuts off the table until May/June at the earliest.
Interest rate traders' expectations for a Fed rate cut have decreased significantly, highlighting concerns about inflation persisting above the target level.
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