A rise in mortgage interest rates has led to a decline in people applying for home loans and homeowners refinancing.

As part of his campaign to get rid of Jerome Powell, President Donald Trump has blamed the Federal Reserve chair for costing the country “hundreds of billions of dollars” by not slashing interest rates.

By Michael S. Derby NEW YORK (Reuters) -Federal Reserve Governor Christopher Waller said on Thursday he continues to believe the U.S. central bank should cut interest rates at the end of this month amid mounting risks to the economy and the strong likelihood that tariff-induced inflation will not drive a persistent rise in price pressures.

Potential homebuyers may be able to save money with a little-known financing option, but they still need to watch their credit.

For a moment on Wednesday, it looked like President Donald Trump would finally attempt the improbable and fire Federal Reserve Chair Jerome Powell.

A new report shows inflation has picked up and analysts believe the prices of many goods increased, in part, because of President Trump’s tariffs. It will play into decisions by the Federal Reserve about when and whether to cut interest rates and comes as the president and his team have ramped up their pressure campaign on Fed Chair Jerome Powell.

Some investors had clung to a bit of hope that the Federal Reserve would cut interest rates at its next meeting on July 30. Tuesday's report on inflation brought the chances of that down even further.

After a quarter-point cut in March, the Bank of Canada held its benchmark interest rate steady at 2.75 per cent in April and June.

If Trump allies really wanted to see homes become more affordable, he would push for less monetary inflation and for lower federal deficits.

Financial markets are betting the Federal Reserve sticks to its "wait and see" approach to interest rates this summer, but that by September it will have waited and seen enough to start cutting borrowing costs.

The higher yields found in the bond market provide a bigger buffer against volatility compared with a few years ago — and greater potential for upside than downside as interest rates change, according to Vanguard.