Mortgage rates may still fall even without a February Fed meeting

Mortgage rates recently eased to their lowest level in over three years, and experts say they could decline further in February even though the Federal Reserve does not meet until mid‑March; most forecasts expect only modest movement in the near term.

Mortgage rates have eased in recent months, falling to their lowest point in over three years and hovering just above 6% for a 30‑year fixed mortgage. That decline is linked in the article to a recent $200 billion mortgage‑backed securities purchase and three Federal Reserve rate cuts last year. The Federal Reserve will not hold a policy meeting in February and next meets in mid‑March. Experts quoted in the article say market forces beyond scheduled Fed decisions — such as bond yields, inflation data and employment reports — can still move mortgage rates. Key facts: - Rates were reported near their lowest level in over three years, just above 6% on 30‑year fixed mortgages. - A $200 billion mortgage‑backed securities (MBS) purchase and last year’s three Fed rate cuts are cited as factors that helped lower rates. - The Federal Reserve has no policymaking meeting in February; its next meeting is scheduled for mid‑March. - Mortgage rates commonly follow the 10‑year Treasury yield, so shifts in bond markets driven by inflation or jobs data can influence mortgage pricing. - Forecasts cited include the Mortgage Bankers Association projecting a 6.4% average 30‑year rate at the end of the first quarter and Fannie Mae projecting a 6.1% average. Summary: The recent MBS purchase and prior Fed cuts have coincided with lower mortgage rates, but most analysts cited expect only modest movement through February without a Fed meeting. Movements in the bond market tied to inflation and employment data could still push rates lower or higher in the near term. Housing demand in the spring season could affect market dynamics and prices. The Federal Reserve’s mid‑March meeting is the next key scheduled policy event that could change the outlook.