Mortgage rates spent much of 2025 parked in the upper-6% range, held in place by persistent inflation pressures and a cautious Federal Reserve. That began to shift late in the year as the Fed signaled it was ready to ease policy. Rates slipped as the Fed began bringing the federal funds rate down in September.

At its January and March 2026 meetings, however, the central bank hit pause, holding rates steady to assess how previous cuts were working their way through the economy. The Fed again opted to leave the federal funds rate unchanged during its April 2026 meeting, citing continued economic uncertainty, including low job gains, elevated inflation and little change to the unemployment rate, along with increases in global energy prices, and the possible impacts of the Middle East conflict, as factors in the decision.

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