The June CPI (inflation) report was released today with great findings.

The inflation rate fell for the third month by.1% to 3.0%, below expectations of 3.1%. This is the first negative Month-over-month inflation print since May 2020.

Core CPI inflation fell to 3.3%, below expectations of 3.4%.

To make matters better, ‘Shelter, the most critical component of the core CPI numbers–the one that tracks housing expenses– dropped to 0.17% from 0.4% last month.

This report, together with the recent employment data showing growth is slowing in jobs and higher unemployment filings, is welcome news for the Fed to start lowering rates.

Markets are now predicting an 83% chance of a rate cut at the September Fed meeting and two cuts in 2024.

Today’s national average 30-year mortgage rate is 6.85%