Mortgage rates dropped to their lowest since February 2023

Today, the August CPI inflation report showed that inflation increased.2% month over month and fell to 2.5% year over year as expected. Core CPI inflation was up.2% month over month and at 3.2% year over year, as expected. This marks the lowest annual inflation rate since March 2021.

The main force driving rates down are signs of a weakening economy. Last week, the August Jobs report showed that the US economy added 142,000 jobs, below the expected 164,000. The unemployment rate was 4.2%, 4.2% expected.

On top of the low August Jobs numbers, the June and July jobs reports have been revised lower by a combined 86,000 jobs.

Next Wednesday is the big Fed meeting, and the Fed is expected to lower the Fed rate by .25% for the 1st time since 2020. Mortgage rates are already ‘priced in’ this cut.

Today’s national average 30-year mortgage rate is 6.11%