Average mortgage rates in August continued their steady decline and are now at their lowest rate since last November. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.59%, 13 basis points (bps) lower than July. Meanwhile, the 15-year rate declined 15 bps to 5.71%. Compared to a year ago, the 30-year rate is higher by 9 basis points (bps), and the 15-year rate is marginally higher by 3 bps. The 10-year Treasury yield, a key benchmark for long-term borrowing, averaged 4.29% in August – an 8 bps decrease from the previous month. Yields moved unevenly during the month: initially declining, then rising following July’s inflation report that noted an acceleration in core inflation. Long-term yields subsequently retreated following Federal Reserve Chair Jerome Powell’s Jackson Hole speech last Friday, where he signaled possible rate cuts. Powell noted that the downside risk to employment is on the rise while inflation expectations are well-anchored around the Fed’s longer-run target of 2%. Recently, President Trump sought to fire Federal Reserve Governor Lisa Cook, alleging she submitted fraudulent information on mortgage applications. Cook has since filed a lawsuit to block her dismissal, arguing that the president lacks authority to remove a Fed governor without cause. The case underscores ongoing concerns about the central bank’s independence from political influence. Separately, former Federal Reserve Governor Adriana Kugler resigned earlier this month to return to academia, creating a vacancy on the Board of Governors for the President to fill. Both Cook and Kugler were nominated by President Joe Biden. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.