It's important to understand that the Fed's decision to pause rate cuts will not directly impact mortgage rates. Mortgage rates are actually driven by a range of factors, including the Fed's rate changes. This week's Fed rate decision does, however, have a big influence on where mortgage rates could head.

The Federal Reserve left interest rates unchanged Wednesday as it began a new wait-and-see policy stance amid a cloudy economic outlook and uncertainty over whether some of President Donald Trump’s policies could stymie the fight against inflation.

The Federal Reserve is expected to hold interest rates steady on Wednesday as it awaits further inflation and jobs data and more clarity on the economic impact of President Donald Trump's policies before deciding whether to cut borrowing costs again.