The U.S. Department of Labor’s Consumer Price Index indicated that consumer prices saw their smallest annualized increase in over two years in June. Following the release of the data, Marty Green spoke with reporters to discuss how the most recent CPI report impacts mortgage rates.
“June’s CPI numbers will be welcome news to the Federal Reserve,” Green said. “These numbers should confirm that the Fed’s rate hike campaign is continuing to achieve the desired results and should be nearing its end. However, when the Fed meets later this month, the expectation is still that it will increase the Federal Funds rate by another quarter point.
“The Fed understands that fighting inflation is a bit like fighting a fire. Just because the flames have calmed down for now doesn’t mean the ingredients for a flare-up aren’t still there. But the continued progress on the inflation front should relieve the pressure on the Federal Reserve to tighten interest rates further after the July increase, which should in turn have a positive impact on mortgage rates.”
Green’s comments were included in the following coverage:
- Scotsman Guide – Inflation lower than expectations in June, according to new CPI
- National Mortgage News – Mortgage rates creep closer to 7%: Freddie Mac
- Asset Securitization Report – Mortgage rates creep closer to 7%: Freddie Mac
- Mortgage Professional America – Mortgage rates surge to new record high