Mortgage rates cool off as the policy debate heats up

Mortgage News Daily — which bases its data on rates quoted to borrowers with the best credit profiles — reported that the 30-year fixed rate dropped to 6.57% this week. That’s the lowest figure since October 2024. Conversely, HousingWire’s data powered by Polly — which relies upon locked loan rates across all borrower credit profiles — shows that the 30-year rate bottomed out this year at 6.69% in April, not long after President Donald Trump’s global tariff announcement.

Last week, the Fed once again held its policy rate steady at a range of 4.25% to 4.5%. But more signs are emerging that the cuts projected at the start of the year are likely to happen sooner rather than later.

Opposing views at the Fed

Two members of the Federal Open Market Committee —…