INFLATION NUMBERS, RATES, + FED COMMENTS IN FOCUS

Rates are DOWN SLIGHTLY?to end the week.? Check em' out and then read our 30 second commentary below .Rates are averages / examples for network use only: Pricing as of 6/14/2024 at 4:15 pm.

INFLATION NUMBERS, RATES, + FED COMMENTS IN FOCUS ?

Mortgage Rates Inch Lower

Good news for homebuyers! Mortgage rates finished the week slightly below where they began.

Inflation Shows Signs of Cooling

The Consumer Price Index (CPI), a key inflation gauge, remained flat in May, exceeding analyst expectations. While year-over-year inflation sits at 3.3%, this marks a slowdown from previous months. Core CPI, excluding volatile food and energy prices, also showed a modest increase of 0.2% for the month.

Producer Prices Unexpectedly Fall

Producer prices, tracked by the Producer Price Index (PPI), took a surprising turn downward in May, dropping 0.2% after a previous increase of 0.5%. Core PPI prices remained flat.

Fed Update: Rate Cuts Pushed Back

The Federal Reserve sent mixed signals this week. While the softer inflation data suggests room for rate cuts, Fed officials now project only one cut this year, potentially as late as December.? They did telegraph upwards of 100 basis points in cuts for 2025, but that is yet to be seen.?Chair Jerome Powell emphasized a data-driven approach, waiting for a clearer picture of inflation and unemployment before adjusting rates.

Retail Sales Up Next

The economic calendar remains light next week, with the most anticipated report being Tuesday's Retail Sales data. Juneteenth, a federal holiday, will cause a market closure on Wednesday. Given the recent economic reports, expect a period of relative market stability with potentially some choppy trends until the next wave of data arrives.

Stay tuned for further updates on the US economy and its impact on borrowing rates. ?

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