POLICY WATCH
1. Fed Holds Rates at 3.5%, 3.75% as Inflation and Energy Costs Stay Elevated
The Federal Reserve left its benchmark policy range unchanged at 3.5% to 3.75%, while signaling that inflation, employment data, energy prices and global developments will continue to shape future decisions.
According to the Federal Reserve’s April 29, 2026 FOMC policy statement, policymakers kept the federal funds target range at 3.5% to 3.75%.
The Federal Open Market Committee (FOMC), the Federal Reserve group that sets U.S. monetary policy, maintained its federal funds target range at 3.5% to 3.75% on April 29, 2026. The statement cited solid economic expansion, low average job gains, little recent change in unemployment, and elevated inflation partly linked to higher global energy prices.
- The Fed said economic activity has been expanding at a solid pace, while average job gains have remained low and unemployment has changed little in recent months.
- The Committee said inflation remains elevated and continues to target 2% inflation over the longer run.
- The decision was not unanimous: one voter preferred a quarter-point reduction, while three others opposed adding an easing bias to the statement.
Why it matters: A federal funds rate decision does not set mortgage rates directly. However, it can influence broader financial conditions and expectations. Borrowers and home shoppers should not assume this announcement guarantees a particular mortgage rate, payment, approval outcome or future policy move.
Bottom line: The Fed is holding policy steady and emphasizing incoming data, so mortgage professionals should continue separating official policy decisions from day-to-day loan pricing.
HOUSING SNAPSHOT
2. U.S. Home Prices Rose 1.6% Over the Year, FHFA Reports
January brought only a 0.1% monthly increase in U.S. home prices, but the latest FHFA data also show that appreciation varied sharply across regions.
According to the Federal Housing Finance Agency’s House Price Index release, U.S. home prices rose modestly in January 2026 and increased 1.6% over 12 months.
According to the Federal Housing Finance Agency (FHFA), its seasonally adjusted House Price Index (HPI) increased 0.1% in January 2026 and was up 1.6% from January 2025. The prior December reading was revised from a 0.1% increase to 0.3%.
- The seasonally adjusted national HPI rose 1.6% from January 2025 to January 2026.
- Monthly changes across the nine Census divisions ranged from a 0.7% decline in West South Central to a 1.7% increase in East South Central.
- Over 12 months, regional results ranged from a 0.8% decline in West South Central to a 4.4% gain in East North Central.
Why it matters: The national figures indicate relatively modest price movement, while the regional spread shows that local housing conditions can differ substantially. Borrowers and housing professionals should avoid treating a national trend as a direct measure of any particular market.
Bottom line: Use national HPI data as broad context, then review current local-market information before evaluating housing conditions.
POLICY WATCH
3. Fed Holds Rates at 3.5%, 3.75% as Inflation Stays Elevated
The Federal Reserve left its benchmark policy rate unchanged at 3.5% to 3.75%, signaling no new rate move in its June decision while inflation remained elevated.
According to the Federal Reserve’s June 17, 2026, FOMC policy statement, the committee maintained its target range for the federal funds rate at 3.5% to 3.75%.
The Federal Open Market Committee (FOMC) voted unanimously on June 17, 2026, to keep the federal funds target range at 3.5% to 3.75%. The committee also said economic activity was expanding at a solid pace, while inflation remained above its 2% goal.
- The FOMC approved the decision by a 12, 0 vote and reaffirmed its policy of maintaining ample reserves in the banking system.
- The statement described economic activity as expanding at a solid pace, with strong productivity growth and capital investment.
- The committee said job gains had kept pace with the workforce and that the unemployment rate had changed little, but inflation remained above the Fed’s 2% goal.
Why it matters: A steady federal funds rate does not set mortgage rates directly. However, the Fed’s assessment of inflation, employment, growth, and economic uncertainty can influence financial-market expectations that affect mortgage pricing. Borrowers should not assume this decision alone means mortgage rates will rise or fall.
Bottom line: For mortgage professionals, the decision reinforces the need to distinguish the Fed’s policy rate from day-to-day mortgage-rate movements.
HOUSING SNAPSHOT
4. U.S. Home Prices Rose 1.8% in 2025, FHFA Reports
U.S. home prices continued to rise through the end of 2025, but the latest quarterly gain was smaller than the annual increase.
According to the Federal Housing Finance Agency’s House Price Index report, U.S. home prices rose 1.8% year over year through the fourth quarter of 2025.
The Federal Housing Finance Agency (FHFA) House Price Index reported that U.S. home prices increased 1.8% from the fourth quarter of 2024 to the fourth quarter of 2025. The agency also reported a 0.8% quarterly increase and a 0.1% seasonally adjusted monthly increase in December.
- Prices were up 1.8% compared with the fourth quarter of 2024.
- Prices increased 0.8% from the third quarter to the fourth quarter of 2025.
- FHFA’s seasonally adjusted December index rose 0.1% from November.
Why it matters: The figures provide national housing-market context for borrowers and mortgage professionals. They do not indicate how prices moved in a particular city or state, and they do not predict future values or mortgage rates.
Bottom line: Use the FHFA data as a broad market reference, while checking local conditions for property-specific context.
This RGI Mortgage Brief is for general educational purposes only. Programs, pricing, terms, eligibility, and availability may change and remain subject to complete review and lender approval. This is not a commitment to lend.