Markets overwhelmingly expect a quarter-point hike, but the Fed’s projections and the bond market’s response may matter more to originators
Tagged: CPI
Consumer inflation rose just 0.1% in July, reducing pressure for a September Fed rate hike as mortgage rates remain near their highest levels of the year
The bipartisan Housing Affordability Act would let the FHA use a construction-cost index instead of CPI to set loan limits
GSE also predicts lower rates, higher originations for ’25 and ’26, with next year to eclipse this one
Norada Real Estate Investments said "rates likely to decline" after the latest CPI report.
Despite a 3.2% increase from last year, Federal Reserve is expected to hold off amid lingering inflation concerns; housing expenses remain stubbornly high.
Decline leads to optimism about a stable rate environment and a potential rise in home sales in the upcoming year.
Both the 30-year and 15-year fixed mortgages reach their highest levels since November.
The increase in the CPI is down from 9.1% at the same point last year.