The Consumer Price Index rose 3.2% year-over-year in October, a lower than expected increase that signaled the loosening grip of inflation on the economy. Following the release, Marty Green spoke with reporters on what the latest data means for the mortgage industry.
“Thanksgiving came early this year in the form of an inflation report that should allow the Federal Reserve the necessary breathing space to leave the fed funds rate unchanged at their December meeting,” Green said. “The housing component of the CPI index, which is a lagging indicator, is finally starting to reflect the effects of the Fed’s policy changes over the last year.”
Green added: “We have believed for some time that the Fed is done raising rates this cycle and this report supports that thesis. We expect the Fed to continue to keep their rhetoric about their readiness to raise rates if necessary but believe based on the trend of recent reports that they will see little reason to do so.”
Green’s comments were included in the following media coverage:
- Scotsman Guide: CPI, a key inflation metric, posts lower increase than expected in October
- National Mortgage News: Mortgage rates trend down on positive inflation news
- CNET: Mortgage Forecast for November 2023: Cooling Inflation Is Encouraging for Mortgage Rates
- National Mortgage Professional: Mortgage Rates Dip As Inflation Eases
- Mortgage Professional America: Mortgage rates dip amid signs of receding inflation