Fed chair Powell's 'wait and see' approach to interest rates has drawn criticism from the Trump administration, which insists that they be slashed to increase homebuyer demand and relieve the housing market. However, the Fed isn't directly responsible for mortgage rates.

The average rate on 30-year fixed home loans increased to 6.75% for the week ending July 17, up from 6.72% last week.

The wait for a more affordable housing market is only getting longer as lingering inflation and tariff uncertainties keep the Fed in monitor mode.

Analysts believe a modest drop in mortgage rates could prove to be a "magic bullet" for the U.S. housing market.

President Trump argues that the Federal Reserve should cut interest rates to make buying a house cheaper. Former Labor Secretary Robert Reich warns that could backfire.

The post Housing Market Sends Mixed Signals as Inflation and Mortgage Rates Inch Up appeared first on Real Estate News & Insights | realtor.com®.

Headwinds for mortgage rates arrived Tuesday in the form of rising inflation, which likely ends the faint hopes of a Fed rate cut in July.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased. The average rate dropped to 5.87% from 5.92% last week. A year ago, it was 6.07%, Freddie Mac said.