Mortgage rates dip, Fed cuts on deck?

Economic Indicators

Inflation is still doing its steady-but-not-too-scary thing:

• CPI: 322.13
• Core CPI: 328.66
• Annual inflation rate: 2.7% (for the 12 months ending July)

Looking ahead, inflation expectations are holding at ~2–2.5% depending on the timeframe. Treasury yields are: 3.91% (1Y), 3.82% (5Y), 4.29% (10Y). The Fed Funds Rate? Still at 4.33%.

👉 What this means for you: Borrowing isn’t cheap yet, but the stability suggests no big shocks… unless the Fed decides otherwise next month.

Market Trends

The S&P 500 dipped 0.23% to 643.44 on volume of 68M+. Nothing dramatic, just investors doing the “wait and see” shuffle.

Mortgage rates are the real story: the 30-year fixed has slid to 6.58% — the lowest level this year. That’s thanks to traders betting on a Fed rate cut in September.

👉 What this means for you: If you’ve been house-hunting, this dip in mortgage rates is worth watching. Could be time to run numbers again.

Key Developments

• The 10-year Treasury sits at 4.29% — the anchor for mortgages and other long-term borrowing.
• Investors are already gaming out a possible Fed cut.
• Abroad: Bolivia is wrestling with sky-high inflation ahead of elections (aka, not just a U.S. story).

👉 What this means for you: Rate cuts could boost markets short-term, but keep an eye on global headlines too — inflation doesn’t stop at borders.

Market Outlook

We’re in “cautious optimism” mode. Stocks are flat, inflation is steady, and mortgage rates are giving a little relief. But everything hinges on the Fed. If they actually cut rates in September, expect markets (and your loan options) to move fast.

👉 What this means for you: Don’t overreact to daily blips, but keep your radar up — the next Fed meeting could change your wallet math in a hurry.