Maryland Real Estate Agent Blog

Fed Interest Rate Stays Unchanged June 2024

Published: June 13, 2024

The Fed kept interest rates the same on June 12, 2024.

This is a continued pause, as we saw in both March 2024 and May 2024 Federal Reserve meetings.

Inflation is still above the central bank’s goal of 2%, which is why the Federal Reserve Committee is not dropping rates again at this time.

The Federal Reserve Chair, Jerome Powell, now only expects to cut rates once this year, unlike the multiple cuts he expected earlier this year, per a CNBC article on June 12.

A reminder about inflation and interest rates – a lender I trust told me in May that this continued pause is completely about inflation. He said that interest rates really cannot come down before inflation drops more, or the Fed runs the risk of inflation skyrocketing, which would be an enormous problem for the economy.

For Baltimore mortgages, this should not affect interest rates much.

I have mentioned before how mortgage interest rates are determined by many factors. The Fed’s decisions on interest rate hikes or cuts can be one of the factors, but it is generally a small portion. Another lender I work with says that mortgage companies generally anticipate when the Fed will raise or drop rates, so mortgage rates and terms usually already reflect any potential upcoming pause, hike or cut beforehand.

If you are thinking about buying a home in Towson, Timonium, or the Greater Baltimore area, please contact me. I can connect you with a local trusted mortgage professional who can help to guide you through your mortgage options as your buy your new Baltimore home with me!

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