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

The Federal Reserve has stayed the course, stalling rate cuts as they wait to see the impact of President Donald Trump’s Tariffs. Vivian Gueler, CFO of Pacific Trust Group, spoke about mortgage rate expectations for the coming year.

The Fed’s decision on interest rates affects many types of consumer borrowing costs, from credit cards and mortgages to auto loans.

With the Federal Reserve's July meeting on the horizon, many prospective homebuyers and homeowners are wondering what it could mean for mortgage rates. After years of relatively high borrowing costs, even the slightest dip could open doors for those hoping to buy or refinance. But the path forward is far from clear.

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 likelihood of a rate cut in July is low, but at least one member of the Federal Open Market Committee is advocating for one.

Longer-term interest rates do not always decrease when the Fed cuts short-term rates. Following the Fed's cuts last year, 10-year bond yields increased, hitting a high of 4.8% in January, according to Open Markets. Mortgages are closely linked to the 10-year U.S. Treasury yield.

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

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.