August 6, 2024
Mortgage Rates Plummet to Lowest Level in 16 Months.
In the big picture, rates have been moving consistently lower due to an ongoing bond market rally that began in May. That rally is driven by softer inflation/economic data and an increased willingness on the part of the Fed to consider rate cuts.
It's very fair to ask where we go from here. There is never a crystal ball and the lessons of early 2024 should be kept in mind. Additional improvement in rates will require a fresh supply of downbeat economic data and there aren't many big ticket reports on the horizon. Apart from Monday's ISM Services Index, we'll be waiting until the following week for the next installment of the Consumer Price Index (CPI)--the only other report that's as big of a deal as the jobs report these days.
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