Monday Mortgage Minute

Wishing everyone a Happy, Healthy and Prosperous 2024!! And with anticipation the Federal Reserve will cut rates anywhere from 150 to 300 basis points, 2024 should be a much more robust year for housing as compared to 2023. Although the first week of January was not exceptionally favorable for mortgage rates with some lenders raising .125% to .25%, today we are already experiencing a favorable pull back with the 10-year treasury yield back below 4.00%. Thursday & Friday are when the major economic data will be released. Consumer Price Index (CPI) for December will be revealed Thursday morning. November showed a reading of just above 1% hence a similar reading will be anticipated for December. Friday brings the Producer Price Index (PPI) for December. Similar to the CPI, November's reading for PPI was exceptionally low, hence there will be expectation for the same in December. If it appears inflation continues its retreat to the Federal Reserve's self-prescribed 2%, we could see mortgage rates continue the lowering we have been experiencing since late November.