Wednesday brought us the 2nd worst day for mortgage rates since October of 2022. All measures of inflation showed that it is not heading towards the Fed’s target of 2%. Thursday brought some relief with a favorable Producer Price Index, but import data Friday, growing tensions in the Middle East and retail sales data this morning have all further increased concern about the possibility of a Fed rate cut this year.

Looking ahead, this week does not have any headliner economic reports, but significant movement is still possible with the current market landscape. Next Friday the 26th brings the Fed’s favorite measure of inflation, the PCE index. A favorable report then would go a long way towards shifting expectations back to multiple rate cuts in 2024.

American Mortgage Company offers multiple forms of down payment assistance, such as grants, forgivable loans and deferred payment loans. And many of these programs allow for gift funds to cover closing costs!

10 year treasury yield: 4.651%