Cooling consumer inflation data clears path for lower mortgage rates
Interest-rate cuts are already ‘baked into’ mortgage rates, economist says
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With the Federal Reserve widely expected to cut interest rates next week, the housing market is saying goodbye to 7% mortgage rates and rock-bottom home sales.
Recent data showing that the U.S. job market is slowing and inflation is cooling have provided evidence to the Federal Reserve that it can cut its benchmark interest rate. The Fed started ramping up interest rates in 2022, in an effort to arrest inflation in the economy.