What the Fed rate pause may mean for mortgage interest rates

The Federal Reserve's latest interest rate pause could impact homebuyers and owners trying to refinance. sakchai vongsasiripat/ Another Federal Reserve meeting, another interest rate pause . For the third time this year, the central bank elected to keep its Federal funds rate untouched, leaving it at the same range of 3.50% to 3.75% on Wednesday. That all but ensures that interest rates offered by lenders will remain elevated. Or, put another way, savers will continue to benefit from bigger returns on their funds while borrowers will still need to contend with higher costs. And that will remain a problem for homebuyers and owners hoping to refinance their existing homes. At the same time, a pause is still better than another interest rate hike, especially considering the recent surge in inflation that caused that rate to reach a multi-year high. Borrowers will just need to be a bit more strategic in their approach, and that begins with understanding what this latest Fed rate pause may potentially mean for mortgage interest rates . Below, we'll outline three things these borrowers need to know to make an informed decision on their next steps. Start by seeing how low your current mortgage rate offers are here . What the Fed rate pause may mean for mortgage interest rates While it will take time for this latest Fed rate pause to reverberate through the wider market, prospective homebuyers and owners looking to refinance should take the time to understand the likely impacts. …