Latest news with #FederalReserve
Wall Street Journal
34 minutes ago
- Business
- Wall Street Journal
Global Markets Mixed Amid Tariff Uncertainty; PCE Inflation Data Eyed
U.S. stock futures were little changed Friday after modest gains at the close and ahead of PCE inflation data, the Federal Reserve's preferred gauge of inflation, later. Stock markets in Asia ended lower and European bourses were mixed as uncertainty over U.S. tariffs continues. Treasury Secretary Scott Bessent on Thursday said the legal turmoil around the administration's tariffs hasn't had any impact on trade negotiations, and hinted that three 'very large' deals are close but that talks with China are a little stalled.
UPI
42 minutes ago
- Business
- UPI
Fed chair tells Trump policy will not be politically influenced
Federal Reserve Chair Jerome Powell had a meeting with President Donald Trump on Thursday. File Photo by Annabelle Gordon/UPI | License Photo May 30 (UPI) -- The Federal Reserve chair, Jerome Powell, has told President Donald Trump that monetary policy will not be influenced by politics. Powell and Trump had a meeting Thursday as the president has been pressuring the central bank to lower interest rates. A statement published by the Reserve following the meeting said that Powell and Trump discussed economic issues, including growth, employment and inflation. What Powell did not discuss was his expectation for monetary policy, according to the sternly worded statement, "except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook." "Chairman Powell said that he and his colleagues on the [Federal Open Market Committee] will set monetary policy, as required by law, to support maximum employment and stable prices and will make those decisions based solely on careful, objective and non-political analysis," the statement said. The meeting was held at Trump's invitation, it added. White House press secretary Karoline Leavitt confirmed during a press conference Thursday that Trump saw the statement and that it was "correct." "However, the president did say that he believes the Fed chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries," she said. The announcement comes as the Trump administration has been seeking to influence Powell and the Fed to lower interest rates. The Fed has steadily cut the interest rate from a high of 5.5% since the summer of 2024 but has maintained a lending rate of between 4.25% and 4.5% throughout the Trump administration due to uncertainty over the president's ever-changing tariff policies. The Fed issued its most recent hold on the interest rate earlier this month over concerns about tariff-related inflation and slower economic growth. "Uncertainty about the economic outlook has increased further," the Fed said in its May 7 statement. Trump has repeatedly lashed out at the Fed and Powell. On May 2, he took to his Truth Social platform to broadcast "THE FED SHOULD LOWER ITS RATE!!!" As a reason, he pointed to a recent drop in gas prices. After the Fed maintained its interest rate hold about a week later, Trump called Powell "a FOOL, who doesn't have a clue."
CNET
42 minutes ago
- Business
- CNET
Homebuyers See Lower Mortgage Rates: Current Mortgage Interest Rates on May 30, 2025
Check out CNET Money's weekly mortgage rate forecast for a more in-depth look at what's next for Fed rate cuts, labor data and inflation. It's been a bumpy few months for mortgage rates. Lingering inflation, the threat of a global trade war and growing recession worries have reduced affordable options for homebuyers. The average for a 30-year fixed mortgage is 6.94% today, a decrease of -0.02% over the last week. The average rate for a 15-year fixed mortgage is 6.10%, which is a decrease of -0.02% compared to a week ago. Given so much economic uncertainty, the Federal Reserve is adopting a wait-and-see approach when it comes to interest rate adjustments. After cutting borrowing costs three times last year, the central bank has held rates steady so far in 2025, extending its holding pattern for a third consecutive meeting on May 7. If President Trump eases some of his aggressive tariff measures or if the labor market deteriorates, it could prompt the Fed to resume easing interest rates, which would put downward pressure on bond yields and mortgage rates, said Logan Mohtashami, senior analyst at HousingWire. Average 30-year fixed rates are likely to remain stuck between 6.5% and 7% for the time being. Prospective homebuyers also continue to face the challenges of high home prices and limited inventory. When mortgage rates start to fall, be ready to take advantage. Experts recommend shopping around and comparing multiple offers to get the lowest rate. Enter your information here to get a custom quote from one of CNET's partner lenders. About these rates: Bankrate's tool features rates from partner lenders that you can use when comparing multiple mortgage rates. What's behind today's high mortgage rates? Mortgage rates are closely tied to the bond market, specifically the 10-year Treasury yield, which is sensitive to investors' expectations for inflation, labor data, changes to monetary policy and global measures like tariffs. Early forecasts called for a gradual decline in mortgage rates (potentially reaching 6% by the end of 2025), but concerns over a potential recession and uncertain trade policies have kept longer-term bond yields and mortgage rates in flux so far. "Bond yields will only drop if the rate of inflation continues to drop and the economy weakens," said Melissa Cohn, regional vice president at William Raveis Mortgage. "If inflation were to fire back up, that could cause rates to go up," Cohn said, noting that tariffs, by nature, are inflationary. Even if the economy slows and the Fed resumes interest rate cuts this summer, it will be difficult for mortgage rates to fall below 5.5% without the risk of a job-loss recession. For a look at mortgage rate movement in recent years, see the chart below. Mortgage rate forecast for 2025 Check out CNET Money's mortgage forecast for 2025. Here's a look at where some major housing authorities expect average mortgage rates to land. How can I choose a mortgage term? Each mortgage has a loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. With a fixed-rate mortgage, the interest rate is set for the duration of the loan, offering stability. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront. 30-year fixed-rate mortgages The average interest rate for a standard 30-year fixed mortgage is 6.94% today. A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you'll have a lower monthly payment. 15-year fixed-rate mortgages Today, the average rate for a 15-year, fixed mortgage is 6.10%. Though you'll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner. 5/1 adjustable-rate mortgages A 5/1 ARM has an average rate of 6.18% today. You'll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option. Calculate your monthly mortgage payment Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET's mortgage calculator below can help homebuyers prepare for monthly mortgage payments. Where can I find the best mortgage rates? Though mortgage rates and home prices are high, the housing market won't be unaffordable forever. It's always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right. Save for a bigger down payment: Though a 20% down payment isn't required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest. Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates. Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments. Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs. Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.
CNET
an hour ago
- Business
- CNET
Refi Rates Are Easing for Homeowners: Today's Refinance Rates, May 30, 2025
Average mortgage refinance rates have been volleying between 6.5% and 7% as fears of both higher inflation and an economic slowdown play tug-of-war with financial markets. Overall, rates are too high for most homeowners to save money from refinancing. After three interest rate cuts last year, the Federal Reserve has left rates unchanged in 2025 to assess the economic fallout from President Trump's policies on trade, immigration and government spending. While the Fed is expected to resume lowering interest rates this summer, a major refinancing boom is unlikely if average rates stay above 6% — which most economists and housing market experts predict. However, if you're looking to change the length of your loan or switch to a different type of mortgage, refinancing might still be something to consider. Keep in mind that mortgage refinance rates change daily based on a range of economic and political factors. For expert predictions on where rates might be headed, check out our weekly mortgage rate forecast. When mortgage rates start to fall, be ready to take advantage. Experts recommend shopping around and comparing multiple offers to get the lowest rate. Enter your information here to get a custom quote from one of CNET's partner lenders. About these rates: Bankrate's tool features rates from partner lenders that you can use when comparing multiple mortgage rates. Today's refinance rate trends At the start of 2025, many expected inflation to keep cooling down and the Fed to cut interest rates, which would have gradually lowered mortgage refinance rates. However, stronger-than-expected inflation and uncertainty about Trump's economic policies have changed those predictions. Even with some brief dips, mortgage rates and overall financing costs have remained stubbornly high. Investors are concerned that the president's plans for widespread tariffs, mass deportations and tax cuts could significantly increase the government's debt and fuel inflation while also driving up unemployment. Refinance rate predictions Most housing forecasts still call for a modest decline in mortgage rates by the end of the year, with average 30-year fixed rates potentially edging below 6.5%. But even when the central bank resumes policy easing, experts say homeowners shouldn't expect rates to fall in tandem with the Fed's benchmark federal funds rate. While the central bank's policy decisions influence how much consumers pay to borrow, the Fed doesn't directly control the mortgage market. For refinance rates to fall meaningfully, we'd likely need to see several Fed cuts coupled with clearer signs of a slowing economy, like cooler inflation or higher unemployment. It usually takes time for these broader interest rate adjustments to show up in the rates lenders then offer to consumers. Refinancing 101 When you refinance your mortgage, you take out another home loan that pays off your initial mortgage. With a traditional refinance, your new home loan will have a different term and/or interest rate. With a cash-out refinance, you'll tap into your equity with a new loan that's bigger than your existing mortgage balance, allowing you to pocket the difference in cash. Refinancing can be a great financial move if you score a low rate or can pay off your home loan in less time, but consider whether it's the right choice for you. Reducing your interest rate by 1% or more is an incentive to refinance, allowing you to cut your monthly payment significantly. But refinancing your mortgage isn't free. Since you're taking out a whole new home loan, you'll need to pay another set of closing costs. If you fall into that pool of homeowners who purchased property when rates were high, consider reaching out to your lender and running the numbers to see whether a mortgage refinance makes sense for your budget, said Logan Mohtashami, lead analyst at HousingWire. How to choose the right refinance type and term The rates advertised online often require specific conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates. 30-year fixed-rate refinance The average rate for a 30-year fixed refinance loan is currently 6.78%, a decrease of 9 basis points over this time last week. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance, but it will take you longer to pay off and typically cost you more in interest over the long term. 15-year fixed-rate refinance The average 15-year fixed refinance rate right now is 6.13%, a decrease of 4 basis points over last week. Though a 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan, you'll save more money over time because you're paying off your loan quicker. Also, 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save more in the long run. 10-year fixed-rate refinance For 10-year fixed refinances, the average rate is currently at 6.01%, a decrease of 8 basis points over last week. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your house much quicker and save on interest, but make sure you can afford the steeper monthly payment. To get the best refinance rates, make your application as strong as possible by getting your finances in order, using credit responsibly and monitoring your credit regularly. And don't forget to speak with multiple lenders and shop around. Reasons you might refinance your home Homeowners usually refinance to save money, but there are other reasons to do so. Here are the most common reasons homeowners refinance: To get a lower interest rate: If you can secure a rate that's at least 1% lower than the one on your current mortgage, it could make sense to refinance. If you can secure a rate that's at least 1% lower than the one on your current mortgage, it could make sense to refinance. To switch the type of mortgage: If you have an adjustable-rate mortgage and want greater security, you could refinance to a fixed-rate mortgage. If you have an adjustable-rate mortgage and want greater security, you could refinance to a fixed-rate mortgage. To eliminate mortgage insurance: If you have an FHA loan that requires mortgage insurance, you can refinance to a conventional loan once you have 20% equity. If you have an FHA loan that requires mortgage insurance, you can refinance to a conventional loan once you have 20% equity. To change the length of a loan term: Refinancing to a longer loan term could lower your monthly payment. Refinancing to a shorter term will save you interest in the long run. Refinancing to a longer loan term could lower your monthly payment. Refinancing to a shorter term will save you interest in the long run. To tap into your equity through a cash-out refinance: If you replace your mortgage with a larger loan, you can receive the difference in cash to cover a large expense. If you replace your mortgage with a larger loan, you can receive the difference in cash to cover a large expense. To take someone off the mortgage: In case of divorce, you can apply for a new home loan in just your name and use the funds to pay off your existing mortgage.
Business Insider
an hour ago
- Business
- Business Insider
Goldman Sachs says new risks are breaking old market patterns. 3 portfolio moves could help avoid the fallout.
Markets have turned turbulent in recent months amid a wave of new risks that disrupt long-held relationships among stocks, bonds, and currencies. "Recent episodes of simultaneous equity, bond, and dollar declines within that period, especially since early April, have led investors to question whether cross-asset correlations have shifted," wrote Vickie Chang, a macro strategist at Goldman Sachs, on Thursday. Investor sentiment has been shaken by President Donald Trump's trade war and concerns over import tariffs, bond market dysfunction, the Federal Reserve's independence, and US debt sustainability. One of the most striking developments is the decline of US stocks, bonds, and the dollar all at once in what some are calling the "Sell America" trade. This is unusual because bonds typically serve as a cushion when stocks drop, while the dollar tends to strengthen in times of market stress. But the US Dollar Index has already dropped about 8% this year. This is challenging commonly used hedges and typical portfolio strategies, wrote Chang. Chang pointed out "newer worries" about the structural risks of Federal Reserve independence and fiscal sustainability in the US that are shaking up normal market patterns. If these concerns persist, asset correlations could stay off-kilter. Investors should consider three moves to hedge the implications of the fallout from the unusual market movements, she wrote: Position for dollar weakness: especially against the euro, the Japanese yen, and the Swiss franc, to protect against new risks and against US-specific growth worries. Consider buying gold: It's likely to protect against newer structural risks, Chang wrote. Gold is trading around $3,300 an ounce. Goldman Sachs expects the yellow metal to reach $3,700 an ounce by year-end and $4,000 an ounce by mid-2026. Watch risks from longer-dated bonds: Long-dated bonds might not reduce risk as much as they normally do. If concerns about the Fed's independence and US debt hit bond prices, these risks would hurt long-dated bonds harder than shorter-dated ones. Meanwhile, shorter-dated bond yields should protect against equity downside if the market registers clear concerns about economic growth, Chang wrote. She added that the Fed would cut interest rates if the growth outlook weakens materially.
