Mortgage Relief on Horizon as Inflation Eases and Fed Targets Cuts

Pierre Yared, acting chair of the White House Council of Economic Advisers, stated that Americans looking to buy homes could see additional mortgage rate relief as inflation continues to ease and the Federal Reserve moves toward lowering interest rates.

Yared noted during a recent interview that mortgage rates ultimately track the Federal Reserve’s policy rate and should decline further as economic conditions stabilize. “As inflation continues to normalize and as the Fed continues to decrease interest rates, we should anticipate additional relief for families when it comes to mortgages,” he said.

According to housing data cited by Yared, the average 30-year fixed mortgage rate currently sits just above 6%, while 15-year fixed rates remain in the mid-5% range. Although recent movements have been slow, Yared indicated that broader trends point toward gradual improvement for buyers.

Yared argued that inflationary pressures surged under the Biden administration, forcing the Federal Reserve to aggressively raise rates. With inflation now retreating, he stated that the central bank has room to ease policy without jeopardizing economic stability. “It’s natural that given this inflation is back down to historic ranges, that the Fed brings interest rates back down to historic levels,” Yared added.

The acting chair also highlighted economic gains since President Donald Trump returned to office, noting that mortgage rates have already declined from earlier highs and put more money back in the pockets of prospective homeowners.

Yared acknowledged that recent government shutdowns complicated economic data collection, including employment data typically used by the Federal Reserve. He said these gaps may have contributed to slower movement in rates in the short term.

Despite near-term uncertainties, Yared expressed confidence that continued normalization of inflation and steady economic growth would improve housing affordability heading into 2026. “We’re moving in the right direction,” he stated, adding that easing inflation and lower rates would help restore confidence for families considering one of the largest financial decisions they make.

Furthermore, Yared emphasized that a recent uptick in the national unemployment rate to 4.6% reflects renewed economic confidence rather than underlying weakness, pointing to an increase in Americans reentering the labor force. “When you look under the hood, that’s entirely driven by reentry into the labor force — more people want to participate in President Trump’s economy,” he said.