The Federal funds rate will remain on hold. That was the major news that came out of the central bank's meeting this week after it elected to keep the rate frozen at a range of 3.50% to 3.75%. Without a rate cut since December 2025, then, borrowing costs aren't expected to improve, either. And that's especially true for homebuyers and owners hoping to refinance. Rates for both loan types actually increased on Thursday as the rate pause had a chance to echo through the wider borrowing climate.