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.

Amid pressure from President Donald Trump to keep lowering interest rates, the Federal Reserve held steady.

After lowering interest rates by a full percentage point last year, officials at the central bank are weighing a solid economy and rising inflation risks.