Mortgage rates in US inch down, sending 30-year loans to 6.74%
The average for 30-year, fixed loans was 6.74 per cent, down from 6.75 per cent last week, Freddie Mac said in a statement.
High home prices and mortgage rates hovering stubbornly close to 7 per cent are discouraging buyers from forging ahead on deals, even as the recent bump in listings has increased their negotiating power.
Purchases of resale homes dropped in June to the slowest pace in nine months, the National Association of Realtors reported this week.
The Federal Reserve is largely expected to hold interest rates steady at its meeting next week.
Policymakers face 'a lot of political pressure' to cut, said Jiayi Xu, an economist at Realtor.com. 'However, the persistent risk of tariff-driven inflation, combined with a rising US fiscal debt – expected to grow further following the passage of the Big Beautiful Bill – has helped establish a relatively high floor for interest rates, at least for now.' BLOOMBERG
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Straits Times
19 hours ago
- Straits Times
Adriana Kugler resigning from US Fed, opening door to Trump appointment
Sign up now: Get ST's newsletters delivered to your inbox Ms Adriana Kugler will exit the central bank on Aug 8, before the conclusion of her term. WASHINGTON - The Federal Reserve said on Aug 1 that governor Adriana Kugler is resigning early from her term and will exit the central bank on Aug 8, potentially shaking up what was already a fractious succession process for Fed leadership amid difficult relations with President Donald Trump. The Fed said in a statement that Ms Kugler, who became a governor in September 2023, will leave before her term's conclusion, which was scheduled for Jan 31, 2026. In a press release, the Fed said Ms Kugler will return to Georgetown University as a professor next autumn. Ms Kugler did not attend this week's rate-setting Federal Open Market Committee meeting. Ms Kugler's early departure may shake up the timeline for the succession process now surrounding Fed chair Jerome Powell, whose term ends in May 2026. Mr Trump has threatened to fire Mr Powell repeatedly, believing interest rates should be much lower than they are. Mr Trump will now get to select a Fed governor to replace Ms Kugler and finish out her term. Top stories Swipe. Select. Stay informed. Tech Reporting suspected advanced cyber attacks will provide a defence framework: Shanmugam Business Singapore's US tariff rate stays at 10%, but the Republic is not out of the woods yet Asia Asia-Pacific economies welcome new US tariff rates, but concerns over extent of full impact remain Business ST explains: How Trump tariffs could affect Singapore SMEs, jobs and markets Asia Indonesia's Mount Lewotobi Laki-laki erupts Singapore Thundery showers expected on most days in first half of August Singapore Synapxe chief executive, MND deputy secretary to become new perm secs on Sept 1 Singapore 5 women face capital charges after they were allegedly found with nearly 27kg of cocaine in S'pore Some speculation has centred on the idea Mr Trump might pick a potential future chair to fill that slot as a holding place. The White House did not immediately respond to a request for comment about the Fed appointment, although Mr Trump said later he was happy to have an open slot to fill. 'I would not read any political motivation into what (Kugler is) doing, although the consequence of what she's doing is she's calling Trump's bluff,' said Mr Derek Tang, an analyst at LH Meyer, a research firm. 'She's putting the ball in his court and saying, look, you're putting so much pressure on the Fed, and you want some control over nominees, well, here's a slot.' The mechanics of filling the soon-to-be open governor role have a number of moving parts that make it hard to say how Mr Trump will approach finding a replacement for Ms Kugler. Mr Tang noted the president could even fill the position temporarily with a recess appointment while the Senate, responsible for confirming Board of Governors officials, is not in session. There's also some uncertainty about what would happen to someone quickly confirmed to the role given that the term ends early in 2026, although some Fed observers noted a governor can stay in office in an expired term until a replacement has been confirmed. Over recent days, Mr Trump's rhetoric about the Fed has remained heated - he called Mr Powell on Aug 1 'a stubborn MORON' - but he appears to have backed away from his threats to fire the central bank leader. Challenging term In a letter to Mr Trump announcing her resignation, Ms Kugler wrote 'I am proud to have tackled this role with integrity, a strong commitment to serving the public, and with a data-driven approach strongly based on my expertise in labour markets and inflation.' Ms Kugler's time at the Fed was a challenging one as central bankers raised rates aggressively to combat high inflation pressures. Those high rates have put them in the crosshairs of Mr Trump and have caused economic challenges, although inflation pressures have moved much closer to the central bank's 2 per cent target. At the FOMC meeting this week, the Fed maintained its interest rate target range at between 4.25 per cent and 4.5 per cent as policymakers stayed on the sidelines to see how Mr Trump's aggressive regime of large import tax increases will affect the economy and inflation pressures. Two Fed officials opposed that stance and wanted a rate cut, worried that risks to the job market are rising and that the inflation threat posed by tariffs is transient. The Fed's dissenters found some support for their concerns in the release on Aug 1 of weaker-than-expected jobs data that was particularly notable for downward revisions to prior month's job gains. Some Fed officials who spoke on Aug 1 noted the report with concern but said they need to see more evidence the job market is running into trouble before changing their views on monetary policy. Mr Trump reacted to the jobs data with a double-barrelled attack, hitting the Fed for not cutting rates while directing his staff to fire the commissioner of the Labour Department's Bureau of Labour Statistics, claiming - without evidence - the hiring numbers had been rigged. Mr Trump's move rattled markets and raised questions about the future integrity of one of the most important statistical reports financial markets rely upon.
CNA
20 hours ago
- CNA
Kugler Resigns From Fed, Opening Door to Trump Appointment
WASHINGTON: Federal Reserve Governor Adriana Kugler will step down from her post on Aug 8, the US central bank said Friday (Aug 1), creating a vacancy that could allow President Donald Trump to begin reshaping the Fed's leadership amid tensions over interest rate policy. Kugler, who joined the Fed in September 2023, was originally set to serve until January 2026. The central bank said she will return to Georgetown University as a professor next autumn. Kugler did not attend this week's Federal Open Market Committee (FOMC) meeting, a move Fed watchers described as unusual. The central bank did not provide further comment on her early exit. Her resignation comes as Fed Chair Jerome Powell's term nears its May 2026 end. Trump, who has long criticized Powell and the Fed for maintaining high interest rates, has threatened to remove Powell and could use Kugler's vacancy to elevate a preferred candidate. Trump will now nominate a new governor to serve the remainder of Kugler's term. The White House did not immediately respond to a request for comment on who might be chosen. In a resignation letter to Trump, Kugler said: 'I am proud to have tackled this role with integrity, a strong commitment to serving the public, and with a data-driven approach strongly based on my expertise in labor markets and inflation.' Kugler's tenure was marked by the Fed's efforts to bring inflation under control through aggressive rate hikes. While inflation has recently moved closer to the Fed's 2% target, the central bank's high rates have become a source of political friction. At its latest meeting this week, the Fed left interest rates unchanged at 4.25% to 4.5%, opting to observe the economic effects of Trump's sweeping tariff increases before adjusting policy. Two FOMC members dissented, urging an immediate rate cut due to rising risks to the labor market and the belief that tariff-driven inflation would be temporary.
CNA
a day ago
- CNA
Dollar tumbles, traders price in more US rate cuts after weak jobs report
NEW YORK :The dollar fell broadly on Friday after data showed that U.S. employers added fewer jobs in July than economists had expected, while last month's jobs gains were revised sharply lower, leading traders to ramp up bets on how many times the Federal Reserve is likely to cut rates this year. Employers added 73,000 jobs last month, below the 100,000 expected by economists polled by Reuters, while the unemployment rate edged higher to 4.2 per cent, as anticipated, up from 4.1 per cent in June. Job gains for June were revised down to 14,000, from the previously reported 147,000. 'It's worse than anyone expected and the kicker is that downward revision for the prior month too,' said Helen Given, director of trading at Money USA in Washington. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was last down 1.09 per cent on the day at 98.94. The euro rose 1.22 per cent to $1.1554. The single currency reached $1.1389 earlier on Friday, the lowest since June 10. Against the Japanese yen, the dollar weakened 1.58 per cent to 148.35. The greenback earlier reached 150.91, the highest since March 28. The Fed has indicated it is in no rush to cut rates due to concern that President Donald Trump's tariff policies will reignite inflation over the coming months. Fed funds futures traders pared bets on how many times the U.S. central bank is likely to cut rates this year after Fed Chair Jerome Powell on Wednesday offered a hawkish outlook for monetary policy and declined to indicate that a cut in September was likely. But they ramped up bets on cuts again on Friday after the jobs data. Traders are now pricing in 54 basis points of cuts by year-end, up from around 34 basis points on Thursday, with the first cut seen in September. Whether the Fed cuts in September will now likely depend on the next jobs report for August. '(Powell) did say on Wednesday that we were looking at holding rates steadier for longer, but that we were going to get two sets of employment data before the next Fed meeting. So as this first set has been so decidedly negative… the labor market is clearly, clearly cooling, that's going to raise the importance of that September figure as well,' said Given. The dollar had gained earlier on Friday after Trump imposed new tariff rates on dozens of trade partners. The Swiss franc was among the hardest hit as Switzerland now faces a 39 per cent rate. The Swissie fell against a range of currencies in response to Trump's hefty duties and to his demand that pharma companies - key Swiss exporters - lower the prices at which they sell to U.S. consumers. The dollar was last down 0.82 per cent against the Swiss franc at 0.806, after earlier reaching 0.8171, the highest since June 23. The Canadian dollar strengthened 0.58 per cent versus the greenback to C$1.38 per dollar, after earlier easing to C$1.3879, the weakest since May 22. Canada was hit with a 35 per cent tariff, instead of the threatened 25 per cent. The dollar had also gained against other currencies due to drivers other than tariffs. The yen was earlier headed for its largest weekly loss this year after the Bank of Japan signaled it was in no hurry to resume interest rate hikes, prompting Finance Minister Katsunobu Kato to say on Friday that officials were "alarmed" by currency moves.
