At 4.3%, the Fed's benchmark interest rate remains markedly higher than it was between 2008 and 2022, when the bank started to hike rates in response to rising prices. But it is roughly a percentage point lower than where it stood last year.

Several economists expect the Federal Reserve could play wait-and-see for a while longer. Some expect the Fed to next cut rates in September.

This month, it decided to keep the benchmark rate at the same range of 4.25% to 4.50%. When interest rates are high, like they are now, the banks have to pay more to borrow money, and so do you, for loans, mortgages, credit cards and more. At the same time, some banks offer better returns for the money and deposits you keep in their institutions.

For homebuyers, this means that mortgage rates are likely to keep hovering around the 7-percent mark for the foreseeable future. A majority of experts were expecting the Federal Reserve to leave its key interest rate unchanged on Wednesday,