Business, Finance & Tech
Mortgage Rates Hold Steady as Fed Faces Political Pressure
Mortgage rates remained largely unchanged this week, holding steady despite growing political turmoil surrounding the Federal Reserve.
According to Freddie Mac, the average 30-year fixed mortgage rate came in at 6.56% for the week ending August 28, just slightly lower than last week’s 10-month low of 6.58%. The stability comes as President Donald Trump intensifies his criticism of the Fed, including a controversial move to fire Fed Governor Lisa Cook, who has filed a lawsuit challenging his attempt to remove her.
Some economists warn that ongoing political pressure could undermine the central bank’s independence and eventually push rates higher. “We are concerned about Fed independence, and we do believe that any significant loss in Fed independence will translate into higher rates,” said Eric Hathaway, a portfolio manager at RBC Global Asset Management.
Mortgage rates typically move in tandem with the 10-year Treasury yield, influenced by inflation expectations rather than directly by Fed decisions. Recent weak jobs data has fueled speculation that the Fed could cut interest rates in September, contributing to the recent dip in mortgage rates.
For buyers, current conditions may offer opportunities despite the uncertainty. Lisa Sturtevant, chief economist at Bright MLS, noted that more inventory and sellers cutting prices could give buyers additional negotiating power. “If you are a home buyer who is ready to get into the market, and you can afford to buy a home in this market, you can take advantage of more inventory and of more negotiating power than you could have a year ago,” she said.
While the future of the Fed’s independence remains in question, for now, the drama has not significantly impacted mortgage rates, leaving the housing market in a wait-and-see mode.
Credit: CNN Newsource
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By: CNN Newsource
August 28, 2025
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