Fine-Tuning Financial Forecasts: July's Inflation Insights and Mortgage Trends
Lisa Mailhot | September 4, 2024
Buyers
Lisa Mailhot | September 4, 2024
Buyers
The recent report by the Commerce Department’s Bureau of Economic Analysis highlighted a continuing yet moderate cooling in inflation with the Personal Consumption Expenditures (PCE) price index rising by 2.5% year-over-year in July. This figure stands slightly above the Federal Reserve's target of 2%, signaling a nuanced approach to economic management moving forward.
Diane Swonk from KPMG U.S. explains, "The base effects will continue to influence year-over-year inflation measures strongly through the end of this year." This steady yet slow pace suggests that the Federal Reserve may opt for a minimal rate cut in September, possibly adjusting the federal funds rate by only 25 basis points.
Following the Fed’s policy direction, mortgage rates have shown fluctuations. After reaching a high in April, rates have somewhat stabilized but remain sensitive to new economic data. This volatility underscores the intricate connection between broader economic policies and the specific impacts on mortgage rates.
On August 25, Optimal Blue data revealed a notable decrease in mortgage rates, which dipped to a new low for the year. This change is closely tied to the investor's expectations of future rate cuts, affecting both home buying affordability and the investment landscape in real estate.
Federal Reserve Chairman Jay Powell, in his recent Jackson Hole speech, emphasized the delicate balance the Fed seeks to maintain: fostering economic stability while preventing significant disruptions in the labor market. This approach suggests a cautious but proactive strategy in adjusting monetary policies.
As we observe these financial adjustments, it’s essential for both buyers and sellers to stay informed about how these changes could affect their real estate decisions. If you're considering making a move in the dynamic markets of Orange County or beyond, let's connect to navigate these financial landscapes together.
Homebuilder sentiment remains low as reliance on price cuts grows, but optimism is building with the potential for a Federal Reserve rate cut. Mortgage rates have alre… Read more
Mortgage applications just hit a three-year high as rates dip to their lowest since October 2024. Learn why this could be a window of opportunity for both buyers and s… Read more
The U.S. rental market is heating up again, with asking rents climbing at the fastest pace since 2022. Limited new apartment construction and strong demand are fueling… Read more
A new Redfin analysis shows the U.S. homeowner population ticked down 0.1% year over year in Q2 2025 while renter households jumped 2.6%. Prices remain high, mortgage … Read more
Pending home sales are climbing for the second month in a row, while mortgage rates have dropped to their lowest level in 10 months. More affordable listings are hitti… Read more
New-home sales slowed in July 2025 as affordability challenges weighed heavily on buyers, despite builder incentives and discounts. With prices dropping below existing… Read more
Nearly half of U.S. workers are reconsidering big financial moves like purchasing a home because of concerns over job stability, according to a new Redfin survey. Whil… Read more
July 2025 housing starts data shows single-family construction climbing in the South while slowing in other parts of the country. For Orange County buyers and sellers,… Read more
Apartment-building permits slowed across the U.S. this past year, signaling tighter future rental supply even as demand firms back up. Here’s what the national trend—a… Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most
Get In Touch With Lisa
Broker Associate
949-877-7087
124 Tustin Ave Suite 200, Newport Beach, CA 92663