Federal Reserve Chairman Kevin Warsh talks about the central bank's stance on forward guidance and whether it was a discussion of future rate cuts during a press conference.
Housing prices fell this week to its lowest level in more than a month, mortgage broker Freddie Mac said Thursday.
Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed an average rating on the bench. 30 year fixed term loan decreased to 6.47% compared to last week's 6.52%.
The average rate for a 30-year mortgage was 6.81% last year.
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The average rate on a 30-year mortgage fell to 6.47%. (Daniel Acker/Bloomberg via Getty Images)
“Incoming data continues to show strong consumer demand, with retail sales improving and pending home sales strengthening, suggesting that purchasing demand continues to improve modestly,” said Sam Khater, Freddie Mac's chief economist.
The average 15-year fixed mortgage rate fell to 5.81% from last week's reading of 5.84%.
Prices have been boosted of late as concerns about a war with Iran weighed on markets. On June 17, President Donald Trump signed a memorandum of understanding while attending meetings in France, while Iran signed remotely. The interim framework calls for an immediate end to the conflict, the reopening of the Strait of Hormuz, restrictions on Iran's stockpile of enriched uranium and a 60-day window to negotiate a permanent deal addressing Tehran's nuclear program.
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The deal also includes provisions to ease economic pressure on Iran, including access to some frozen assets and the lifting of certain restrictions, while it has drawn criticism from some opponents who say the deal offers too many concessions without requiring Iran to immediately dismantle its nuclear infrastructure.
“The past few weeks have been full of back-and-forth, showing progress toward a settlement, to be followed by stronger military action,” said Realtor.com chief economist Anthony Smith. “However, recent rounds have shown more promise than previous rounds of deferrals, as an interim agreement has now been drafted and has now been signed by President Trump.”
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Mortgage rates are affected by several factors, including the Federal Reserve and geopolitics. Although mortgage rates are not directly affected by the Fed's interest rate decisions, they closely track the 10-year Treasury yield. The 10-year yield rose to 4.45% as of Friday afternoon.
The U.S. central bank on Wednesday announced it would keep interest rates unchanged amid concerns about rising inflation amid the Iran war, as new Federal Reserve Chairman Kevin Warsh's tenure at the central bank gets off to a strong start.
Federal Reserve Chairman Kevin Warsh holds his first press conference following the two-day meeting of the Federal Open Market Committee (FOMC), at the Federal Reserve in Washington, DC, on June 17, 2026. (Eric Lee/Reuters)
Fed policymakers voted 12-0 to leave the benchmark federal funds rate unchanged in its current range of 3.5% to 3.75%. The move follows the central bank's decision to hold interest rates unchanged in January, March and April following three consecutive reductions based on 25 in September, October and December to close last year.
The Federal Open Market Committee (FOMC), the central bank's panel responsible for monetary policy, noted in its statement that. inflation it remains above the bank's target of 2%, which it said “partly reflects supply shocks that have caused price increases in some sectors, including electricity.”
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“Warsh used his first decision as chairman to signal a broad regime change: bias ended, previous guidance was suspended, and the committee's statement was rewritten with a single, unwavering commitment to delivering price stability,” Smith said. “The markets responded with a jump in the 10-year Treasury and an increase in the rate increase before the end of the year. The logic of Warsh's approach, which finds credibility by following rather than telegraphing, is sound and ultimately a way to reduce long-term rates. But the market without a clear direction may seek a premium in the near term, which may end up mortgase quickly raising Iran.”
FOX Business' Bradford Betz and Eric Revell contributed to this report
