economy
Inflation Just Fell Again. Is That Good News for Mortgage Rates?
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TL;DR
- The Consumer Price Index rose 3.4% annually in July, a decrease from previous months.
- Core inflation also edged lower in July.
- Falling inflation can positively influence mortgage rates by affecting the bond market and Treasury yields.
- The Federal Reserve's monetary policy, influenced by inflation and labor market data, can also impact borrowing costs.
- Despite positive inflation news, rates remain elevated, and one or two reports do not guarantee a significant drop.
- Prospective homebuyers are advised to shop around with multiple lenders and strengthen their financial profiles to secure better terms.