Jerome Powell signaled the Fed may be done raising rates, which could mean mortgage rates keep dropping. The job market is cooling and inflation is easing, two things that typically push rates down.
The Fed chair, Jerome Powell spoke today and boy, was it good news for mortgage rates and inflation. So Jerome Powell mentioned that the job market is cooling and that inflation has calmed down, but it's still a little bit higher than the Fed wants to see. Core PCE inflation is 3.5 for the last 12 months. The Fed's goal is 2%. But it's such a laggy report because it's a 12 month rolling average. So we're still getting hit for last December of January's inflation then we know that has no impact on today's world. So if you take out just the last six months of that report, core PCE inflation is only a 2.4%, not very far off the 2% mark that the Fed wants to see. And the markets believe the Fed might cut their rates around May or June of next year. So the markets are loving it. Mortgage rates already dropped an eighth of a percent today as a huge intraday adjustment. And this is all speculation. Imagine what will happen as a lot of these things start playing out. Mortgage rates really start to drop. We're going to keep you informed, everything you need to know as we watch mortgage rates continue to lower.
