Homebuyers to face steep borrowing costs despite Fed move
Homebuyers are likely to face steep borrowing costs despite signals from the Federal Reserve that it may be ready to pause a yearlong campaign of rate hikes
By ALEX VEIGA
Published - May 04, 2023, 02:24 PM ET
Last Updated - Jun 21, 2023, 10:45 PM EDT
LOS ANGELES AP" target="_self">(AP) — Homebuyers should get used to painfully high mortgage rates, despite this week's signal from the Federal Reserve that it could finally pause its yearlong campaign of rate hikes.
The Fed raised its short-term rate to roughly 5.1% Wednesday, the highest since 2007.
While the Fed stopped short of declaring an end to the hikes, its effectively raised the possibility of pausing them after a streak of 10 increases going back to March 2022.
A pause would likely only nudge mortgage rates modestly lower, said Greg McBride, chief financial analyst at Bankrate.com.
