Look what's happening to mortgage rates now with central bankers on track to lower the cost of borrowing.

I'm David Brancaccio Federal Reserve Chair Jerome Powell has set the stage for the central Bank's first cut in interest rates in four

years, but we'll have to wait another seven more weeks for that. Powell cited greater

progress toward lower inflation, as well as a cooler job market. He spoke after wrapping up

the Fed meeting yesterday. The question will be whether the totality of the

data, the evolving outlook in the balance of risks are consistent with rising

confidence on inflation and maintaining a solid labor market. If that test is

met, a reduction in our policy rate could be on the table as soon as the next meeting in September.

Bonds are rising in anticipation, pulling down market interest rates.

The 10-year is at 4.02 percent.

Could it be below 4 percent anytime soon?

The average 30-year fixed-rate mortgage fell to 6.7 percent,

according to Mortgage News Daily's calculation.

Watching all of this is Diane Swank, the chief economist at the audit tax and advisory firm KPMG.

Hey Diane.

Good morning.

So the Fed's not going to move officially, doesn't sound like until September the 18th but the market is

already moving you see how low the benchmark 10 year interest rate is?

Chairman Powell said yesterday that in fact the effects of the Fed's

anticipation of moving are immediate because the market anticipates it and

that opens the door particularly for mortgage rates coming down, which

pen up demand in the market is substantial with all those millennials wanting to buy homes

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