Thu, August 28, 2025
Wed, August 27, 2025
Tue, August 26, 2025
Mon, August 25, 2025

Mortgage rates largely unchanged from last week despite pressure on Fed independence

  Copy link into your clipboard //house-home.news-articles.net/content/2025/08/2 .. t-week-despite-pressure-on-fed-independence.html
  Print publication without navigation Published in House and Home on by Channel 3000
          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source

Mortgage Rates Hold Steady Amid Calls for Fed Independence

Mortgage rates in the United States remained almost flat last week, hovering near their highest levels in nearly a decade, according to data released by Freddie Mac. The average 30‑year fixed‑rate slipped only a fraction of a percent to 7.29 %, while the 15‑year fixed rate was at 6.66 %. The slight changes left the market largely unchanged from the previous week, even as lawmakers and media outlets intensified their push for the Federal Reserve to remain independent of political influence.

What the Numbers Actually Say

Freddie Mac’s “Primary Mortgage Market Survey” – a widely referenced barometer of mortgage costs – reported that the 30‑year fixed‑rate was 7.29 % on Thursday, down 0.05 % from the 7.34 % it held the week before. The 15‑year fixed rate was at 6.66 %, a slight dip from 6.71 % the previous week. These rates have been largely flat for more than a month, reflecting a market that is “tuned to the Fed’s policy decisions” rather than any dramatic shifts in consumer demand or supply.

In comparison, the 10‑year Treasury yield, which heavily influences mortgage rates, was trading near 4.70 % during the same period. This yield sits well above the 3.70 % level it hit in early 2023, and remains above the historic lows that helped bring mortgage rates down to 3‑4 % levels a year and a half ago.

Why the Fed’s Independence Matters

Over the past few months, a number of Republican lawmakers have questioned the Federal Reserve’s decision‑making processes, arguing that the central bank should be more responsive to the President’s economic agenda. The most recent wave of criticism came after the Senate’s Committee on Banking, Housing, and Urban Affairs released a draft report that suggested the Fed should consider cutting rates sooner rather than waiting for inflation to fall.

Federal Reserve Chair Jerome Powell has repeatedly emphasized that the Fed’s mandate – to promote maximum employment and stable prices – must be pursued with “independent judgment.” The agency’s “policy decisions are made in the best interests of the American public, not any political party,” Powell said in a statement issued after the Senate report was released. He noted that the Fed will continue to focus on long‑term inflation expectations, which remain above the 2 % target.

The debate over Fed independence is partly driven by the perception that high mortgage rates are stalling the housing market. While some homebuyers are holding off on purchasing due to higher borrowing costs, others argue that the Fed’s stance is appropriate given the current inflation trajectory. According to the Federal Reserve Bank of St. Louis, inflation as measured by the Consumer Price Index has been above 5 % for several months, a level that suggests the Fed’s high‑rate policy may still be needed to bring inflation back down.

Political Pressure and the Market Response

The call for Fed independence has amplified media attention to mortgage rates. In the same week, a Channel 3000 exclusive interview with Freddie Mac’s Chief Mortgage Market Analyst, Karen L. Hughes, shed light on how the Fed’s policy decisions directly shape rates. “We see a tight correlation between Treasury yields and mortgage rates,” Hughes explained. “The Fed’s stance on rates and inflation expectations directly informs the yield curve, which in turn drives the rates that lenders can pass on to borrowers.”

The link to this interview on Channel 3000’s website also directed viewers to a deeper dive into how the Fed’s open‑market operations impact the broader bond market. That deeper dive clarified that even a small shift in the Fed’s target range for the federal funds rate can ripple through the entire yield curve, causing rates on long‑term debt to rise or fall.

Meanwhile, the U.S. Department of Housing and Urban Development (HUD) released a statement saying that the agency will continue to monitor the market closely. HUD officials highlighted that the high mortgage rates have led to a slowdown in the number of approved home purchases, especially among first‑time buyers. “We are seeing a tightening in the supply of qualified borrowers, and that is a concern for both lenders and the broader economy,” said HUD spokesperson David R. Johnson.

What This Means for Homebuyers

With rates remaining close to 7 %, many prospective homeowners are reassessing their timelines. According to a recent mortgage‑broker survey, 45 % of respondents said they are waiting for rates to dip below 7 % before they commit to a purchase. The high rates have also pushed the average monthly payment on a $300,000 mortgage to roughly $2,500, which is higher than many borrowers can comfortably afford.

Housing economists say that the continued pressure on mortgage rates will likely keep the housing market in a state of equilibrium for the near term, with inventory levels staying high and price growth remaining moderate. However, if the Fed were to signal a change in its policy – either a pause in rate hikes or a more dovish stance – rates could start to ease, potentially reigniting demand.

Looking Ahead

The Federal Reserve’s next policy meeting is scheduled for late next month, and analysts expect the agency to keep its policy unchanged for the time being. The Fed has signaled that it will continue to focus on the “dual mandate” – balancing inflation and employment – even as inflation continues to hover near 4‑5 %. Should the inflationary pressures ease, the Fed may begin to reduce its policy stance, which could in turn lower Treasury yields and bring mortgage rates down.

In the meantime, the debate over the Fed’s independence is likely to remain in the political spotlight. The upcoming Senate hearings will probably delve deeper into the Fed’s decision‑making process and its implications for the broader economy. For now, the market remains in a state of “steady‑but‑cautious” equilibrium, with mortgage rates largely unchanged from last week despite the political flurry.

Sources

  • Freddie Mac, “Primary Mortgage Market Survey” (April 2025)
  • Fed Chair Jerome Powell statement (April 2025)
  • Channel 3000 exclusive interview with Freddie Mac’s Chief Mortgage Market Analyst
  • HUD press release on mortgage market trends
  • Federal Reserve Bank of St. Louis inflation data

This article is a summary of the original story published on Channel 3000 and incorporates additional context from related links cited in the original piece.


Read the Full Channel 3000 Article at:
[ https://www.channel3000.com/news/money/mortgage-rates-largely-unchanged-from-last-week-despite-pressure-on-fed-independence/article_fd000a5c-0b5e-51dc-9a86-a1e67cb3da86.html ]