|
What’s Going On With CPI Inflation, Mortgage Rates, and the 10-Year Yield?
-
CPI Inflation: Measures how prices for things like food, gas, and rent are rising. Economists predicted a rise to 2.5%, but the report came in better at 2.4% for May 2025. The prior month we were down to 2.3%.
-
Mortgage Rates: These rise when inflation rises. The Fed raises rates to slow inflation down, which makes home loans more expensive.
-
10-Year Treasury Yield: A key number that often moves with mortgage rates. When this yield goes up, mortgage rates go up too. It reflects what investors expect inflation to do.
The Federal Reserve has been saying for years they wanted a 2% inflation rate before they drop interest rates. We are practically there but they are still deciding to "sit and wait." If they drop the rates a half point or more, we will see instant momentum in the economy, in my opinion.
Questions on any real estate topic, reply to this email.
| 
