If you paid attention to the Federal Reserve's monetary decisions last year, you might have been surprised by something: The central bank's three interest rate cuts didn't help mortgage rates get cheaper for homebuyers.

The central bank’s decision to pause at its first meeting of 2025 followed a series of cuts that began in September to account for progress already made on getting inflation down. Over the course of three meetings, the Fed lowered rates by a full percentage point to a range of 4.25 percent to 4.5 percent, which was maintained on Wednesday.

Consumers and traders are waiting to learn if the Fed’s pause is a one-meeting hold or the start of a longer stretch.

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 on Wednesday hit pause on interest rate cuts in its first key decision of President Donald Trump’s second term.

Brian Jacobsen, chief economist at Annex Wealth, joined TheStreet to discuss what higher for longer rates means for the economy in 2025. Related: Major housing analyst unveils mortgage forecast ahead of Fed meeting CONWAY GITTENS: So,

Here's a quick primer on interest rates and what today's Fed decision could mean for your money. Read more: Trump Can't Lower Interest Rates. But What Power Does the President Hav