Jerome Powell signaled the Fed could cut rates after September if inflation keeps falling and job growth stays weak. Mortgage rates dropped to 6.4% on the news, down from 7% a few months ago, though no rate cut is confirmed yet.
Breaking news after the Federal Reserve meeting this past week, Jerome Powell made some comments that have everyone all excited about the potential for interest rate cuts. The Federal Reserve kept their policy rate the same after this past meeting, which was in line with market expectations. No surprises there. But he made comments indicating that the Federal Reserve is gaining confidence based on Q2's inflation data that we're making headway in the fight against inflation, getting closer to their stated 2% target. Job numbers were also released this week and there's a noticeable slowdown in the market and a higher rate of unemployment. And he basically hinted that if these trends continue, we might have our first interest rate cut in years after September's meeting. Nothing has been firmly decided, and even though there were no cuts, the market reacted very favorably in response to those comments. Interest rates have fallen all the way to the lowest levels we've seen all year, the average 30-year fixed rate coming in at 6.4%. We were well into the 7s just a couple of months ago. As always, I'll keep an eye on these trends so you don't have to, so make sure to follow along for more interest rate updates.
