As a Denver realtor, it's crucial to keep our clients informed about the latest developments in the housing market, including factors that affect mortgage rates. The Federal Reserve's recent decision to hold interest rates steady and the response from President Donald Trump are significant news items that could impact the real estate landscape.
On January 29, 2025, the Federal Reserve announced its decision to maintain the target range for the federal funds rate at 4.25% to 4.5%. This pause in rate cuts comes after three consecutive reductions totaling one percentage point since September 2024. The Fed's decision reflects their ongoing efforts to balance economic growth with inflation control, as recent indicators suggest that economic activity continues to expand at a solid pace while inflation remains somewhat elevated.
Interestingly, President Donald Trump, who has been a vocal critic of the Federal Reserve in the past, has recently expressed support for this decision. In a surprising shift from his earlier stance, Trump stated, "I'm not surprised. Holding the rates at this point was the right thing to do". This change in tone comes just days after he had called for immediate rate cuts during his address at the World Economic Forum in Davos. As real estate professionals, we'll be closely monitoring how this alignment between the Fed's actions and the President's views might influence market stability and consumer confidence in the coming months.