Large housing analysts revealed mortgage forecasts before the Federal Reserve conference

The Federal Reserve Council will announce the results of the board meeting on January 29th that experts believe that it can adjust its interest rate strategy.

It is expected to be a year of consistent reduction in interest rates in 2025, but at least in the short term, unknown number of the US economy may be suspended.

The inflation rate has accounted for a range of 3 %, which is higher than the Federal Reserve’s closest percentage of the overall percentage of the Federal Reserve in the end of 2024-the recent execution command of the New Trump administration may further increase inflation.

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When the Federal Reserve reduced interest rates by 0.5 % in September, experts predict that by 2025, the mortgage interest rate will drop below 6 %. However, due to continuous political and economic uncertainty, the trend of mortgage loans in the past few months is close to 7 %.

Experts predict this year’s mortgage loan interest rate, which is an unpredictable year based on reducing interest rates.

The interest rate of mortgage loans will slowly decline, depending on inflation

The Federal Reserve Chairman Jerome Powell revealed that the central bank will “act with caution” after the decrease in the last decrease of December. Powell pointed out that the decision to decide before Trump’s proposal will not make a decision, but his recent execution order may require the Federal Reserve to re -calibrate.

As the Fed may suspend interest in interest rates and reduce the federal capital interest rate target between 4.25 % to 4.5 %, the prediction of mortgage interest rates may remain unchanged.

Bankrate chief financial analyst Greg McBride predicts more things in 2025.

He said in a statement to TheSTREET: “In 2025, the average 30 -year fixed mortgage interest rate will be spent more than 7 % in most of the 6 years, but it has never reached more than 6 %.” “Continue continuously Economic growth and concerns about inflation and government debt will increase the interest rate of mortgage loans. “

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The 10 -year fiscal yield is a key factor in mortgage interest rates, which may be better than federal capital interest rates. The loan party usually sets the mortgage interest rate within two or three percentage points of the 10 -year fiscal yield to link interest rates with mortgage support securities.

McBride explained why buyers should reduce tax rates or lack tax rates than the Federal Reserve.

He explained: “Since September, it has higher than the entire percentage point, and in the past 10 days, long -term fiscal yields have been relieved.” “But the mortgage interest rate is still more than 7 %, which has a burden on the burden and the house that makes the house and the house. Sales on the ice on the ice. ”

“Potential buyers should pay attention to inflation, not the Federal Reserve, because the decline in inflation is a necessary pioneer for fiscal yields and reduced mortgage loans.”

The inflation policy is the first consideration of the Federal Reserve and consumers

As the mortgage interest rate dropped to 7 %, the inflation rate increased steadily to 3 %, higher than 2.4 % in September. It is expected that the increase in inflation this year will be moderate, but if there is a controversial Trump policy that leads to rising consumer prices, the future increase may not be no problem.

The Fed has publicly announced its commitment to curbing inflation. If so, this may be the most important factor in interest rates this year.

Related: Fed Chairman Jerome Powell issued warning inflation and weak housing market

Prior to the potential trade war with Canada, Mexico, Colombia, and China, economists pointed out that Trump’s campaign proposal can greatly improve inflation.

Since the large -scale deportation of the new government has begun, bird flu is spread across the country. The 25 % tariff on Mexico threatens the agricultural supply of the United States, and consumer prices may rise.

With the rise of inflation, house prices often rise, creating a more challenging housing market for buyers. 38 % of Americans are worried that the inflation rate in 2025 will rise, and 37 % of Americans worry about recession.

Regulating inflation is the key to reducing the financial pressure of consumers, leading to decreased interest rates, increased housing market activities, and greater economic growth.

The Federal Reserve and buyers will need to monitor how inflation can change throughout the year to more clearly clear the future of mortgage interest rates.

Related: Senior fund manager issued Dire S & P 500 warning 2025