If you’ve been following the economy, you know the Federal Reserve has been working hard to keep inflation under control since its peak at 9.1% in June 2022. While inflation has cooled, it still rose 2.8% in February 2025, according to the Bureau of Labor Statistics. As a result, the Fed has decided to hold interest rates steady—at least for now.
What Does This Mean for Mortgage Rates?
Since the Fed didn’t change its benchmark rate, mortgage rates are likely to remain fairly stable in the near term. Right now, the weekly average stands at 6.65% for a 30-year fixed mortgage and 5.8% for a 15-year fixed mortgage. While that’s higher than the rock-bottom rates of a few years ago, it’s still an improvement from the 7.04% peak we saw in January 2025.
For homebuyers, this could be a bit of a waiting game. Many have been hoping for rate cuts to make borrowing more affordable, but waiting isn’t always the best strategy. Mortgage rates are influenced by more than just the Fed’s decisions—factors like investor sentiment, economic policies, and inflation expectations all play a role.
Why Buying or Refinancing Now Can Be a Smart Move
Here’s the reality: No one can perfectly time the market. If you’re in a position to buy now and the numbers make sense for you, locking in today’s rates might be a smart move. Plus, if rates drop later, you can always refinance.
Some key advantages of acting now:
- Home prices are still rising: The median home price is $459,826, and with demand picking up, waiting could mean paying more for the same home in the future.
- Demand is increasing: Home purchase applications are up 5% compared to a year ago, according to Freddie Mac, meaning competition is heating up.
- Refinancing now could secure savings: If you bought a home at the peak of 2023’s mortgage rates, refinancing at today’s lower rates could reduce your monthly payment and long-term interest costs.
- Cash-out refinancing is still a great option: Homeowners looking to tap into their equity don’t have to wait for lower rates—if you need funds for renovations, debt consolidation, or other financial goals, now could be the time to act.
What About Refinancing?
If you already own a home and are thinking about refinancing, this Fed decision means your options haven’t changed much—yet. If rates stay steady, you might choose to wait for a potential drop. But if you’re looking to tap into home equity with a cash-out refinance, you don’t have to wait.
At Avanti Way Financial, we’re here to help you explore your options, whether you’re buying, refinancing, or just keeping an eye on the market. If you want to see what you qualify for, let’s talk!
Final Thoughts
The Fed’s decision to hold rates steady keeps mortgage rates in a similar range, but the market is always shifting. Whether you’re looking to buy your first home, move up, or refinance, staying informed is key. If you’re ready to take the next step, reach out to Avanti Way Financial today. We’ll help you find the best mortgage solution for your needs!
