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monetary policy

30-year mortgage rate holds at 6.48% as Fed's limited influence frustrates homebuyers

Illustration accompanying article: 30-year mortgage rate holds at 6.48% as Fed's limited influence frustrates
  • The 30-year mortgage rate averaged 6.48% on June 4, 2026, remaining elevated despite Fed rate cuts since 2024, according to Freddie Mac.
  • Mortgage rates are driven primarily by long-term bond markets, not Fed policy, with the 10-year Treasury yield at 4.49% serving as the benchmark, finance professor Michael J. Highfield said.
  • Inflation uncertainty and large federal deficits — including a projected $3.4 trillion addition to deficits from the 2025 tax and immigration bill — are pushing investor yield demands higher, Highfield wrote in an analysis published by The Conversation.
  • Historically, today's rates are within normal range: during the 1990s and early 2000s, mortgage rates frequently ranged from 6% to 8%, Highfield noted.
 3 MIN READ

Eurozone retail sales fell 0.4% in April as Iran war energy costs bite

Illustration accompanying article: Eurozone retail sales fell 0.4% in April as Iran war energy costs bite
  • Eurozone retail sales volume fell 0.4% in April from March, worse than the 0.3% decline economists expected, according to data from the European Union's statistics agency.
  • Automotive-fuel sales posted the sharpest drop since August 2023, reflecting higher energy costs triggered by the U.S. and Israel's war with Iran.
  • Consumer confidence in May remained near lows last seen during the 2008 global financial crisis, highlighting growing strain on households.
  • The European Central Bank faces a tightening balancing act: rising core inflation pressures argue for a June rate hike, while weakening demand could limit how aggressively the bank can move.
 3 MIN READ
Illustration accompanying article: Australian dollar at risk of fall on first-quarter GDP, CBA says