Mortgage Rates Fall for a Second Week With All Eyes on the Fed
(Bloomberg) -- Mortgage rates in the US fell for a second straight week, giving home shoppers a bit of a break as the Federal Reserve monitors inflation data.
Most Read from Bloomberg
Wells Fargo Fires Over a Dozen for ‘Simulation of Keyboard Activity’
Apple to ‘Pay’ OpenAI for ChatGPT Through Distribution, Not Cash
Hunter Biden Was Convicted. His Dad’s Reaction Was Remarkable.
US Producer Prices Surprise With Biggest Decline Since October
Tech Powers Stocks as Adobe Surges in Late Trading: Markets Wrap
The average for a 30-year, fixed loan was 6.95%, down from 6.99% last week, Freddie Mac said in a statement Thursday.
A key measure of consumer prices cooled in May to the slowest pace in more than three years, data released this week showed. Yet housing inflation remains high, putting pressure on renters and buyers and casting doubt over the prospect of imminent Fed rate cuts.
“From a higher-level perspective, as the housing market goes, so does the country,” said Ralph McLaughlin, senior economist at Realtor.com. “Since shelter makes up a large portion of our primary measures of inflation, a slowdown in the growth of both prices and rents may be what the broader economy needs to get the Fed to cut rates.”
The central bank left its key interest rate unchanged Wednesday and scaled back its forecast for this year to just one reduction instead of three. Fed Chair Jerome Powell acknowledged “modest” improvement toward the goal of 2% inflation but reiterated that policymakers would seek more sustainable progress before cutting rates.
Most Read from Bloomberg Businessweek
Israeli Scientists Are Shunned by Universities Over the Gaza War
Grieving Families Blame Panera’s Charged Lemonade for Leaving a Deadly Legacy
The World’s Most Online Male Gymnast Prepares for the Paris Olympics
China’s Economic Powerhouse Is Feeling the Brunt of Its Slowdown
©2024 Bloomberg L.P.