Fed Holds Steady on Interest Rates – What That Means for You

At its latest meeting, the Federal Reserve chose to pause its series of rate cuts, citing economic uncertainty. Officials indicated they’ll be closely analyzing future data before deciding on any further adjustments.

What Did the Fed Announce?

According to the Fed, job growth remains strong, and inflation is still somewhat elevated. Their next steps will depend on “incoming data, the evolving outlook, and the balance of risks.” You can read the full statement here.

How Does This Impact Mortgage Rates in Kansas City?

While the Fed’s decisions influence the economy, mortgage rates aren’t directly tied to its policy moves. Since markets had already anticipated this pause, local mortgage rates will likely be driven by broader economic factors and global events.

Is Now a Good Time to Buy a Home in KC?

If you’re thinking about buying, consider these points:

• Interest Rates Might Stay Higher for a While – Even if future data supports rate cuts, there’s no guarantee they’ll drop significantly in the near term.
• Home Prices Are Climbing – Kansas City’s housing market remains competitive, and waiting for lower rates could mean paying more for the same home later.
• Owning Builds Wealth Over Time – Instead of paying rent, buying now lets you start building equity.
• Pre-Approval Gives You an Edge – Having financing in place puts you in a stronger position when the right home comes along.

A Quick Look at Recent Fed Rate Decisions

The Federal Reserve sets the federal funds rate and discount rate, which affect borrowing costs:

• In early 2020, rates were slashed to near zero to support the economy during the pandemic.
• With inflation surging in 2022, the Fed hiked rates to slow spending.
• The first rate cut since 2020 happened in September 2024, with additional cuts following in November and December.

Let’s Chat!

Curious about how this impacts your homebuying plans in Kansas City? Whether you’re ready to buy now or just exploring your options, I’d love to help you navigate the market. Let’s connect!