Mortgage Blog

January 2024 Rate Update - Federal Reserve issues FOMC statement

January 30, 2026 | Posted by: Jack Shotbolt

Understanding the Federal Reserve’s (the "Fed") decisions is crucial for any homeowner or buyer in Omaha. While the Fed does not directly set mortgage rates, their monetary policy implementation creates the "weather conditions" for the interest rates you see on your loan estimate.

The Current State: 2024 Fed Rate Update

As of the latest Federal Open Market Committee (FOMC) statement, the Committee has maintained the target range for the federal funds rate at 5-1/4 to 5-1/2 percent.

The Fed’s current stance focuses on:

Inflation Targets: Seeking a sustainable return to the 2 percent inflation goal.
Balance of Risks: Moving from a period of aggressive rate hikes to a "wait and see" approach to ensure economic stability.
Sustained Employment: Job gains remain strong, and the unemployment rate remains low, allowing the Fed to keep rates elevated until inflation cools further.

Perspective: How Quickly Things Have Changed

To understand where we are going, we must look at where we’ve been. Looking back at our archives, the shift in the financial landscape has been historic:

April 2021: The Board of Governors maintained reserve balances at a mere 0.10 percent.
September 2021: Policy remained highly accommodative at 0.15 percent.
Today: We are seeing the most significant tightening cycle in decades, designed to curb the post-pandemic inflation surge.

How Fed Decisions Impact Omaha Mortgage Rates

Many Omaha buyers ask: "If the Fed holds rates steady, why did my mortgage rate go up (or down) today?"

Mortgage rates are primarily influenced by the 10-Year Treasury Yield. When the Fed issues a "hawkish" statement (suggesting rates will stay higher for longer), Treasury yields often rise, pushing mortgage rates higher. Conversely, when the Fed signals they are ready to cut rates, we often see relief in the mortgage market.

Key Factors the Fed Watches:

Consumer Price Index (CPI): This is the primary measure of inflation.
Labor Market Data: High employment usually means higher for longer rates.
GDP Growth: Strong growth can lead the Fed to keep rates high to prevent "overheating."

What Should Omaha Homebuyers Do Now?

Market volatility is the "new normal." Waiting for the Fed to drop rates to 2021 levels (the 0.10% era) may result in missed opportunities as Omaha home prices continue to appreciate.

Marry the House, Date the Rate: If you find the right home in Omaha today, you can secure it now and look for a VA IRRL or a traditional refinance later when the Fed eventually pivots to lower rates.
Get Pre-Approved: Because Fed statements can cause rates to shift in a single afternoon, having your paperwork ready allows you to "lock in" a rate the moment a favorable window opens.

Stay Informed on Market Shifts

Monetary policy implementation is complex, but your mortgage strategy doesn't have to be. At Shotbolt Mortgage, we monitor the FOMC statements and Federal Reserve updates in real-time so you don't have to.

Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have moderated since early last year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.

In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Philip N. Jefferson; Adriana D. Kugler; Loretta J. Mester; and Christopher J. Waller.

Implementation Note issued January 31, 2024

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