Potential homebuyers could face steep mortgage due to interest rates

The video discusses the Federal Reserve's decision to maintain current interest rates, impacting loans and mortgages. Individuals like Peyton and Mallory face challenges in buying homes due to high rates. The Federal Reserve's benchmark rate remains between 5.25% and 5.5%, with inflation at 3.3%, above the 2% target. Economists predict no immediate rate drop, affecting major purchases. High rates benefit savings accounts, offering growth opportunities. Future rate changes may occur if inflation nears 2%.

What factors do economists believe need to change for a reduction in interest rates?

What is the significance of the 2% inflation target mentioned in the text?