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The latest inflation numbers just came in, and it looks like we’re still heading in the right direction. The annual inflation rate dropped to 2.4% year over year, down from 2.8% in February. That’s the lowest it’s been in four years and the Feds continue to aim for a 2% inflation goal in order to cut interest rates again. The primary reason for this drop is being credited to a decline in gas prices, which helped ease pressure in multiple areas.
Meanwhile, core inflation, which filters out food and energy prices for a clearer view at long-term inflation trends, also moved lower and just hit its lowest point since March 2021. That's a strong sign that inflation is cooling more broadly.
On the flip side, the 10-year U.S. Treasury yield jumped to 4.34% from 4.06% just 7 days ago. That spike is most likely tied to the recent volatility around trade tensions, the stock market, and policy uncertainty in Washington. Since mortgage rates typically follow this number, I wouldn’t expect interest rates to be all that predictable right now.
For more insight on this topic, I'd be happy to chat with you.
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