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Mortgage rates were little changed this week as the Federal Reserve held benchmark interest rates steady, and investors geared up for a potential extended pause.
The average 30-year mortgage rate was 6.1% through Wednesday, according to Freddie Mac data, from 6.09% a week earlier. The average 15-year mortgage rate was 5.49%, from 5.44%.
Learn more: How to get the best mortgage rates right now
After a dip earlier in January, rates have stabilized at levels near where they spent much of the fall.
“The 30-year mortgage rate has eased into the low-6% range, but borrowing costs remain high enough to strain affordability and keep many homeowners on the sidelines, limiting new listings,” Realtor.com economist Jiayi Xu said in a statement.
The Federal Reserve doesn’t directly control mortgage rates, but its interest rate decisions and communications about the future path of rates influence them.
The central bank held benchmark rates steady on Wednesday after three consecutive quarter-point cuts, noting that while inflation remains “somewhat elevated,” the job market is showing signs of stabilization. Speaking with reporters after the decision, Fed Chairman Jerome Powell reiterated that policymakers would take a meeting-by-meeting approach to setting rates.
Mortgage Bankers Association chief economist Mike Fratantoni said in a statement that following the meeting, the trade group still expects mortgage rates to stay in the 6% to 6.5% range for the “foreseeable future.”
“The news from this meeting does not change our forecast for mortgage rates,” Fratantoni said. “We expect that this level of rates will help support a somewhat stronger spring housing market than last year, but not a breakout year.”
Read more: Is now a good time to buy a house?
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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