Mortgage rates remained stable this week, reflecting a sense of resilience despite some mixed economic data. While Retail Sales experienced an unexpected decline across most categories, there’s a silver lining: industrial production far surpassed expectations, largely driven by a surge in utility output due to cold weather. On top of that, the Consumer Price Index's headline and core readings exceeded forecasts, signaling that inflationary pressures are starting to increase once again. This suggests that while the path ahead may present challenges, there are opportunities for stabilization as the economy adjusts. The slowdown in consumer spending could play a role in helping to ease some of these price pressures over time.
Looking ahead, this week’s Federal Reserve minutes may offer further clarity on the Fed’s approach. While equity markets are hopeful for rate cuts, the bond market is cautious, prioritizing inflation control before easing rates. If the minutes indicate the Fed is taking a measured, wait-and-see approach, it could pave the way for slight downward movement in rates.
If you, or anyone you know, is interested in obtaining mortgage financing, reach out to my team today at 541-815-6596. We’re here to help you navigate these opportunities!
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