Weekly Mortgage Rates Continue to Fall as the Fed Debates Timing

Mortgage rates have fallen throughout June, though it's been more a gentle roll down a hill than a tumble off a cliff

The average rate on a 30-year fixed-rate mortgage fell one basis point to 6. 84% the week ending June 26, according to rates vided to NerdWallet by Zillow

A basis point is one one-hundredth of a percentage point

Overall, that average is 11 basis points below where we began the month

Could we see lower mortgage rates in July

Eyes are again turning to the Federal Reserve, which meets at the end of the month

The ink is barely dry on last week's decision to hold rates steady, but rumors of a potential July rate cut are already swirling

Dot plot dramaThe Federal Reserve's bankers tend to present a united front, so any signs of dissension are eye-catching

The "dot plot" released along with the Fed's June 18 decision suggested potential disagreement among the policymakers

Each dot represents one anonymous Fed member and indicates where they think the federal funds rate (the interest rate actually set by the Fed) should be

These estimates come out every other Fed meeting, and June's jections showed more polarization than March

Back then, four bankers thought no cuts were needed this year

In June, that number rose to seven

That doesn't sound a big shift, but bear in mind we're only talking 19 people total

More strikingly, there's still a substantial contingent that does foresee cuts

In both March and June, half the bankers predicted at least half a percentage point drop

But don't forget, the number that don't anticipate any cuts has grown

It certainly gives the appearance of a widening gulf within the group

But there's more than a month until the July 30 announcement, which is plenty of time for minds to change

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Select your optionPrimary residenceSecondary residenceInvestment pertyGet StartedWon’t affect your credit scorePublic disagreementOn Friday, June 20, Federal Reserve board member Christopher Waller told a CNBC interviewer that he believed rate cuts could begin "as early as July. " Waller also noted, however, that he thinks the Fed should "start slow. " Later on Friday, San Francisco Fed president Mary Daly was also interviewed on CNBC, and she took a different tack. "For me, I look more to the fall," she said, though Daly noted that serious softening in the job market could create more urgency

Then on Monday, June 23, Federal Reserve Vice Chair for Supervision Michelle Bowman entered the chat

Speaking at a conference in Prague, Bowman said "it is time to consider adjusting the policy rate. " Assuming inflation remains relatively controlled, Bowman "would support lowering the policy rate as soon as our next meeting. "Though the Federal Reserve is nonpartisan, it hasn't gone unnoticed that both Waller and Bowman were appointed to the Fed Board of Governors by President Trump, who has repeatedly called for a substantial rate cut. (Daly, as a federal reserve bank president, is not a presidential appointee. ) Also appointed by Trump

The oft-criticized-by-Trump Chair Powell, who spoke before Congress on Tuesday

As he generally does, Powell declined to state a firm position on rates' direction, let alone give a timeline, saying: "For the time being, we are well positioned to wait to learn more the ly course of the economy before considering any adjustments to our policy stance. " During later questioning, he underscored the Fed's independence, saying "we don’t take into consideration political factors. "Housing market needs reliefNo matter the motivation, lower interest rates could theoretically bolster the lackluster housing market

The Federal Reserve doesn't set mortgage interest rates, and in recent cycles mortgage rates seemed to blow off the Fed

But if there's er consensus that rate cuts are coming, mortgage rates could drop

That would be welcome news for buyers, who pretty much sat out the spring buying season. "The relatively subdued sales are largely due to persistently high mortgage rates

Lower interest rates will attract more buyers and sellers to the housing market," National Association of Realtors Chief Economist Lawrence Yun noted in a press release on Monday

But lower interest rates can only do so much in the face of high prices

In May, the median existing price was $422,800 — the highest ever recorded for the month of May, according to NAR data

Want a stark illustration of just how much prices have risen in recent years

Regardless of rate movements, more and more Americans are being priced out of ownership entirely

Hopeful buyers should seek out help wherever they can

With an educational background in sociology, Kate feels strongly inequality in ownership and higher education