This is a YouTube video titled "Where are Mortgage Rates Headed?!" containing a monologue or single-speaker discussion from February 2025 analyzing inflation trends and their impact on future mortgage rates. The speaker explains how recent inflation data relates to Federal Reserve targets and forecasts potential mortgage rate decreases.
Served at their rates are quite different than mortgage rates. They are also looking at inflation before they do their next rate cut. The Federal Reserve wants to see annual inflation at 2.0%. You divide that by 12 months, that's 0.16% a month of inflation. Now, I dove into the inflation reports and Since May of 2024, the last eight months, we actually are averaging 0.15% inflation per month. So we are actually a hair below where the Fed wants us to be. And the annual inflation reports, it's a 12 month rolling average. So each month we not only add a new month, but we drop off an old month. So I look back at February, March and April of last year, January was 0.4% and each of the next three months were 0.3%. So these are high inflation months, the first, you know, four months of the year. So each of the next four months, we not only drop those off, but we should replace them by lower inflation numbers. We wiggle free from the bad inflation months. So it should look like in May of 2025, when the April inflation report comes out, we should be on the home stretch of lower mortgage rates.
