Mortgage Update: Fed Signals Slowdown on Rate Cuts as Inflation Rises and Homebuyer Demand Shifts

Today, Fed Chair Powell said, “The economy is not sending any signals that we need to be in a hurry to lower rates.” This change in tone implies that the Fed may be shifting course on rate cuts. The prediction market now shows a 38% probability of no cut in December after Powell’s remarks.

October CPI inflation increased to 2.6%, as expected, with Core CPI inflation at 3.3%, also as expected. October PPI inflation rose to 2.4%, above the forecasted 2.3%, while Core PPI inflation increased to 3.1%, surpassing the expected 3.0%.

Both PPI and CPI inflation are now officially back on the rise.

All eyes are on November’s Jobs Report.

Some stats:

  • Home prices increased 5.8% year-over-year. The median home sales price hit $386,970.
  • Only 24% of homebuyers in November are first-time buyers, the lowest in at least 45 years.
  • 36% of Americans say they would rent if they were planning to move.

About the Author

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Shmuel Alpert

Shmuel Alpert is a loan officer at The Alpert Mortgage Group by GoRascal, offering specialized mortgage assistance to investors and first-time homebuyers. You can contact Shmuel here.