Technologies

Mortgage Rates and the Fed: Everything to Know Before Tomorrow’s Decision

Homebuyers are waiting for lower mortgage rates, but the Fed’s decisions are keeping them on hold.

On Wednesday, the Federal Reserve is expected to extend a pause on interest rate cuts for a fourth consecutive time this year. Though mortgage rates could see some volatility, many economists expect them to stay somewhat flat until the economic picture drastically changes.

Rates will stay in the 6.75% to 7.25% range unless the Fed signals multiple cuts soon and backs it up with data, said Nicole Rueth, of the Rueth Team with Movement Mortgage. «Homebuyers waiting on rates to drop drastically might be disappointed,» Rueth said.

The relationship between the central bank’s interest rate decisions and home loan rates isn’t direct or immediate. Case in point: The Fed’s three interest rate cuts in 2024 didn’t translate into cheaper mortgages. The average rate for a 30-year fixed home loan has hovered around 6.8% since late fall.

Often, what the central bank says about future plans can move the market more than its actual actions. Mortgage rates are driven by the bond market, investor expectations and a host of other economic factors.

«Mortgage rates move on expectations, not announcements,» said Rueth.

Tomorrow’s focus will be on what Fed Chair Jerome Powell says following the meeting. Should Powell express concern over lingering inflation or a reduced number of rate cuts, bond yields and mortgage rates are expected to rise. If he conveys optimism about inflation and suggests further policy easing, mortgage rates may decline.

«It’s most often the case that longer-term interest rates begin to decline before the Fed cuts rates,» said Keith Gumbinger, vice president at HSH.com.

Here’s what you need to know about how the government’s interest rate policies influence the mortgage market.

What is the Fed’s relationship to mortgage rates?

The Fed sets and oversees US monetary policy under a dual mandate to maintain price stability and maximum employment. It does this largely by adjusting the federal funds rate, the rate at which banks borrow and lend their money.

When the economy weakens and unemployment rises, the Fed lowers interest rates to encourage spending and propel growth, as it did during the COVID-19 pandemic.

It does the opposite when inflation is high. For example, the Fed raised its benchmark interest rate by more than five percentage points between early 2022 and mid-2023 to slow price growth by curbing consumer borrowing and spending.

Changes in the cost of borrowing set off a slow chain reaction that eventually affects mortgage rates and the housing market, as banks pass along the Fed’s rate hikes or cuts to consumers through longer-term loans, including home loans.

Yet, because mortgage rates respond to several economic factors, it’s not uncommon for the federal funds rate and mortgage rates to move in different directions for some time.

Why is the Fed putting off interest rate cuts?

After making three interest rate cuts in 2024, the Fed is now in a holding pattern. With President Donald Trump’s unpredictable tariff campaign, immigration policies and federal cutbacks threatening to drive up prices and drag on growth, economists say the central bank has good reason to pause.

«The Federal Reserve is in one of the trickiest spots in recent economic history,» said Ali Wolf, Zonda and NewHomeSource chief economist.

Lowering interest rates could allow inflation to surge, which is bad for mortgage rates. Keeping rates high, however, increases the risk of a job-loss recession that would cause widespread financial hardship.

Recent data show inflation making slow but steady progress toward the Fed’s annual target rate of 2%. But given the uncertainty surrounding Trump’s economic agenda, the central bank isn’t in a hurry to lower borrowing rates.

What is the forecast for interest rate cuts in 2025?

Though Powell remains noncommittal on any specific time frame, experts now predict an interest rate cut in the fall.

«I’m eyeing September for the first rate cut, if inflation keeps cooling and the labor market weakens,» Rueth said.

However, tariffs are the big wildcard. Rueth said that if a trade war fuels inflation, rates could jump even without a Fed move. Political dysfunction, rising debt and global instability are also a recipe for rate volatility.

«The mortgage market reacts fast to uncertainty, and we’ve got no shortage of it this summer,» Rueth said.

On the flip side, if unemployment spikes — a real possibility given rising jobless claims — the Fed could be forced to implement interest rate cuts earlier than anticipated. In that case, mortgage rates should gradually ease, though not dramatically.

Most housing market forecasts, which already factor in at least two 0.25% Fed cuts, call for 30-year mortgage rates to stay above 6.5% throughout 2025.

«We might see rates settle into the low to mid-6% by year-end,» Rueth said. «But we’re not going back to 3%.»

What other factors affect mortgage rates?

Mortgage rates move around for many of the same reasons home prices do: supply, demand, inflation and even the employment rate.

Personal factors, such as a homebuyer’s credit score, down payment and home loan amount, also determine one’s individual mortgage rate. Different loan types and terms also have varying interest rates.

Policy changes: When the Fed adjusts the federal funds rate, it affects many aspects of the economy, including mortgage rates. The federal funds rate affects how much it costs banks to borrow money, which in turn affects what banks charge consumers to make a profit.

Inflation: Generally, when inflation is high, mortgage rates tend to be high. Because inflation chips away at purchasing power, lenders set higher interest rates on loans to make up for that loss and ensure a profit.

Supply and demand: When demand for mortgages is high, lenders tend to raise interest rates. This is because they have only so much capital to lend in the form of home loans. Conversely, when demand for mortgages is low, lenders tend to slash interest rates to attract borrowers.

Bond market activity: Mortgage lenders peg fixed interest rates, like fixed-rate mortgages, to bond rates. Mortgage bonds, also called mortgage-backed securities, are bundles of mortgages sold to investors and are closely tied to the 10-year Treasury. When bond interest rates are high, the bond has less value on the market where investors buy and sell securities, causing mortgage interest rates to go up.

Other key indicators: Employment patterns and other aspects of the economy that affect investor confidence and consumer spending and borrowing also influence mortgage rates. For instance, a strong jobs report and a robust economy could indicate greater demand for housing, which can put upward pressure on mortgage rates. When the economy slows and unemployment is high, mortgage rates tend to be lower.

Read more: Fact Check: Trump Doesn’t Have the Power to Force Lower Interest Rates

Is now a good time to get a mortgage?

Even though timing is everything in the mortgage market, you can’t control what the Fed does. «Forecasting interest rates is nearly impossible in today’s market,» said Wolf.

Regardless of the economy, the most important thing when shopping for a mortgage is to make sure you can comfortably afford your monthly payments.

More homebuying advice

Technologies

Every iPhone 17E Rumor and Leak That I Found: Dynamic Island, MagSafe and More

Apple’s reportedly releasing a lower-priced iPhone 17, and it might offer notable improvements over last year’s iPhone 16E.

Key Takeaways:

Features: Apple might include MagSafe on the iPhone 17E.
Release date: Possibly as soon as February.
Price: There have been no leaks about price increases, which is good news at this point.
Design: Could get the Dynamic Island and look more like an iPhone 15.

Apple might be continuing its lower-cost iPhone line, with an iPhone 17E reportedly releasing early this year. If that’s true, the sequel to last year’s iPhone 16E has a lot of room to step up.

Some rumors point to improvements borrowed from Apple’s iPhone 15, such as Dynamic Island and MagSafe. If these are true, it could make the lower-cost iPhone 17E a compelling value option with fewer trade-offs needed to hit a lower price.

Apple’s $599 iPhone 16E was a bit of an oddity when it was released last year. It replaced Apple’s $429 iPhone SE, effectively retiring the older iPhone SE design that included a home button with Touch ID. Apple’s new «budget» device was a pricier amalgamation, featuring the body of an iPhone 14 with a display notch. It also had the USB-C port from the iPhone 15 and the A18 processor from the iPhone 16 to support Apple Intelligence features.

To save money, Apple scaled back on features by including only a single 48-megapixel main camera and omitting Apple’s MagSafe clip-on capability (though it kept standard wireless charging). While the iPhone 16E is a solid starter iPhone, I found these omissions to be confusing, especially given that Apple increased the price of this entry-level iPhone from $429 to $599.

An iPhone 17E could follow a playbook closer to Samsung’s Galaxy S25 FE. It would have many of the same features as the iPhone 16 and iPhone 17, like the smaller screen notch and an A19 processor, along with smaller stepbacks to the hardware that might be less noticeable.

Apple hasn’t confirmed whether an iPhone 17E exists yet, but we’re keeping an eye out. Here are the rumors we’ve heard so far, with features that could help or hinder the more budget-friendly iPhone 17E.

iPhone 17E release date: February 2026

The iPhone 17E could be announced as early as February, according to a Mashable report citing the Digital Chat Station Weibo account. The phone is said to be launching in the first half of the year. This would align with the iPhone 16E’s February 2025 announcement, establishing winter as Apple’s preferred launch window for cheaper iPhone models.

There are even rumors suggesting the base iPhone 18 will launch in the first half of 2027, but let’s not get too ahead of ourselves.

iPhone 17E design: Gets a Dynamic Island

One aspect that made the iPhone 16E stand out was Apple’s new design, which featured the iPhone 14’s body, a USB-C port and a single camera.

The iPhone 17E, however, will allegedly look more like 2023’s iPhone 15, with a smaller Dynamic Island cutout, according to the same Digital Chat Station Weibo post. The iPhone 17E is rumored to have a 6.1-inch display with a cutout, including dynamically sized notifications for timers and app alerts, such as Uber pickups.

This design is corroborated by the Smart Pikachu Weibo account, which also notes that the iPhone 17E will have a 60Hz refresh rate screen rather than the 120Hz one seen across the iPhone 17 line and the iPhone Air. It’d be nice to see a 17E with a 120Hz display, dubbed ProMotion by Apple. But this is one area that could be less noticeable to people coming from a former iPhone SE or an older base model like the iPhone 14.

While Apple’s ProMotion displays have been available on Pro models for years — as well as on almost every Android phone that costs $300 and more — the smoother animations and always-on displays it provides won’t be as noticeable when switching from a phone that never had them.

iPhone 17E features: MagSafe wireless charging

It baffled me that Apple didn’t include MagSafe with last year’s iPhone 16E. The feature, which allows for sticking magnetic accessories like chargers and wallets without a case, has been on most iPhone models since 2020. It felt like a strange omission, since Apple contributed MagSafe’s charging and magnetic profiles to the Qi2 standard, both of which are on Google’s Pixel 10 phones, HMD’s Skyline, and the upcoming Clicks Communicator.

The iPhone 17E is rumored to have a glass back that supports magnetic wireless charging — likely meaning the phone would gain the ability to magnetically attach to MagSafe and Qi2 accessories, according to a report in The Information spotted by 9to5Mac. This would be a major improvement for someone coming to this phone from an iPhone SE or the iPhone 11, both of which do support Qi wireless charging but do not include magnets for attaching accessories and cases.

While we would need more details, hopefully the inclusion of MagSafe also means the iPhone 17E’s wireless charging speed would increase to at least 15 watts, matching the iPhone 15.

iPhone 17E pricing

We’ll keep updating this story as more iPhone 17E rumors arrive. While there isn’t much regarding the pricing of the rumored phone, last year’s iPhone 16E starts at $599 for a 128GB model. I’m hoping the iPhone 17E starts at 256GB of storage, like the base iPhone 17. Apple still sells both the 16E and the iPhone 16 at 128GB, with the latter starting at $699.

Technologies

Today’s NYT Strands Hints, Answers and Help for Jan. 24 #692

Here are hints and answers for the NYT Strands puzzle for Jan. 24, No. 692.

Looking for the most recent Strands answer? Click here for our daily Strands hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle, Connections and Connections: Sports Edition puzzles.

Today’s NYT Strands puzzle is one of those where the answers only make sense in pairs. There are six answers to find, and each of them matches up with one of the other answers. Some of them are difficult to unscramble, so if you need hints and answers, read on.

I go into depth about the rules for Strands in this story.

If you’re looking for today’s Wordle, Connections and Mini Crossword answers, you can visit CNET’s NYT puzzle hints page.

Read more: NYT Connections Turns 1: These Are the 5 Toughest Puzzles So Far

Hint for today’s Strands puzzle

Today’s Strands theme is: A work of art.

If that doesn’t help you, here’s a clue: On museum walls.

Clue words to unlock in-game hints

Your goal is to find hidden words that fit the puzzle’s theme. If you’re stuck, find any words you can. Every time you find three words of four letters or more, Strands will reveal one of the theme words. These are the words I used to get those hints but any words of four or more letters that you find will work:

FINS, FINE, FINES, GARB, BOAT, GATES, GATES, FIST, RATE, RATS, STAR, PAINT, SILL, SPAT

Answers for today’s Strands puzzle

These are the answers that tie into the theme. The goal of the puzzle is to find them all, including the spangram, a theme word that reaches from one side of the puzzle to the other. When you have all of them (I originally thought there were always eight but learned that the number can vary), every letter on the board will be used. Here are the nonspangram answers:

STARRY, NIGHT, WATER, LILIES, BOATING, PARTY

Today’s Strands spangram

Today’s Strands spangram is FAMOUSPAINTING. To find it, start with the F that’s four letters down on the far-left vertical row, and wind up, across, and then down.

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Toughest Strands puzzles

Here are some of the Strands topics I’ve found to be the toughest.

#1: Dated slang. Maybe you didn’t even use this lingo when it was cool. Toughest word: PHAT.

#2: Thar she blows! I guess marine biologists might ace this one. Toughest word: BALEEN or RIGHT.

#3: Off the hook. Again, it helps to know a lot about sea creatures. Sorry, Charlie. Toughest word: BIGEYE or SKIPJACK.

Technologies

San Diego Comic-Con Draws a Line: No AI Art Allowed at 2026 Event

The long-running fan convention is banning AI-created works from its popular art show.

Like Sarah Connor in The Terminator, San Diego Comic-Con is fighting back against AI. The prestigious, long-running pop culture convention has banned all artwork created by artificial intelligence from the 2026 Comic-Con art show. Rules posted on the Comic-Con website now state that AI-generated art won’t be shown in any form.

«Material created by Artificial Intelligence (AI) either partially or wholly, is not allowed in the art show. If there are questions, the Art Show Coordinator will be the sole judge of acceptability,» the website reads.

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A representative for San Diego Comic-Con did not immediately respond to a request for comment.

In the past, the convention allowed participants to display AI artwork, provided it was clearly marked as such and wasn’t sold. But now, those artists can’t even bring it through the door. The rule change is a response to artist-led pushback, according to a 404 Media report. San Diego Comic-Con is one of the world’s most famous pop culture conventions, uniting comics, movies, television, gaming, cosplay and collectibles.

Jim Zub, writer for the Conan the Barbarian and Dungeons and Dragons comic book series, told CNET he supports Comic-Con’s decision and hopes other conventions will follow their lead.

«Hundreds of thousands of people attend San Diego Comic-Con each year, and the excitement that generates isn’t because they’re eager to meet a computer spitting out homogenized slop,» Zub said.

Zub, who’s also an artist, is scheduled to appear at Comic-Con in 2026.

Entertaining AI

The use of generative AI in comic book and pop culture art has generated controversy in recent years as AI programs have become more skilled at imitating creators.

A central focus of the 2023 actor’s strike involved backlash against the use of AI in movies and television. The issue has continued to roil Hollywood, as actors, special effects designers, and other film workers see the technology as a threat, while some movie studios view AI as a way to reduce production costs.

Netflix has already begun using AI-generated imagery in at least one series, Argentine sci-fi show El Eternauta. CEO Ted Sarandos praised the technology during a 2025 earnings call.

«We remain convinced that AI represents an incredible opportunity to help creators make films and series better, not just cheaper,» Sarandos said at the time.

AI is also an issue in the video game industry, with publishers facing swift backlash whenever fans discover AI was used in a game. The Indie Game Awards rescinded two awards for the hit RPG, Clair Obscur: Expedition 33, after they found out that AI-made placeholder assets were included when the game launched. The game developer quickly patched the assets out.

While the movie and video game industries appear to have mixed views on using AI, Comic-Con has taken a firm stance, at least for now.

«Artists, writers, actors and other creatives gather and celebrate the popular arts in person because the people part of the equation is what matters most,» Zub said.