Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased. The average rate dropped to 5.87% from 5.92% last week. A year ago, it was 6.07%, Freddie Mac said.

Fed chair Powell's 'wait and see' approach to interest rates has drawn criticism from the Trump administration, which insists that they be slashed to increase homebuyer demand and relieve the housing market. However, the Fed isn't directly responsible for mortgage rates.

The average rate on the 30-year fixed mortgage fell this week to 6.74%, according to the latest Freddie Mac data released on Thursday. That is down from last week's reading of 6.75%.

Analysts believe a modest drop in mortgage rates could prove to be a "magic bullet" for the U.S. housing market.

As more homes remain on the market longer, buyers are closely watching mortgage rates to see if there's an opportunity to save money.

Weekly mortgage rates continued to simmer last week, as markets wait in suspense ahead of the White House’s August 1 tariff deadline. The average 30-year fixed-rate mortgage rose one basis

Mortgage rates today remain high, with 30-year fixed at 6.625% and ARMs climbing. See how current rates compare.

After falling for 5 straight days leading into Tuesday, mortgage rates have now moved slightly higher on each of the past two days. As was the case with the improvement, the bounce back has been exceedingly modest in its pace.

The average rate on 30-year fixed home loans increased to 6.75% for the week ending July 17, up from 6.72% last week.

Trump is fed up with Powell, but experts say Americans seeking cheaper interest rates and lower prices shouldn’t be rooting for the Fed chair to be forced into an early exit.