The Fed left interest rates the same on March 19, 2025.
The Fed paused interest rate changes in the January 2025 Federal Reserve meeting, but prior to that there were three drops – a 1/4 point drop in both the December 2024 Federal Reserve meeting and in the November 2024 Federal Reserve meeting and a 1/2 point drop in the September 2024 Federal Reserve meeting, which happened after continued pauses in March 2024, May 2024 and June 2024 Federal Reserve meetings. Prior to those pauses, we had seen rates rise for awhile.
The Federal Reserve indicated back in December 2024 that it planned to hold rates steady in the future, since inflation remained above their 2% goal at the time. At that time, the Fed hoped to have two rate cuts in 2025, which was down from the four rate cuts they had outlined in their September 2024 meeting. They stated on March 19, 2025 that they still plan to cut 1/2% in 2025, which in the past would most likely indicate two 1/4% cuts.
Please note that mortgage interest rates are determined by many factors. The Fed’s decisions on interest rate hikes or cuts can be one of those factors, but it is generally a small part. Lenders that I work with say 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 prior to an official Fed meeting announcement.
If you are considering buying a home in Timonium, Towson, or the Greater Baltimore area, please contact me. I would be happy to connect you with a local trusted mortgage professional who can help to guide you through your mortgage options as your buy your new Towson home with me!
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