Rate change (30 yr fixed) since Mon, Sept 15th: par rates are higher by .125%
Summary: inflation held steady in August while jobless claims improved, existing home sales were flat but new home sales surged, and stronger Q2 GDP underscored resilience as the Fed weighs growth risks against still-elevated inflation.
Last week:
Inflation steady: Core PCE rose 0.2% monthly, holding at 2.9% YoY; overall PCE at 2.7%.
Jobless claims fall: Initial claims down to 218K, but continuing claims stuck above 1.9M.
Existing home sales flat: down 0.2% in August; inventory up nearly 12% YoY.
New home sales surge: up 21% in August to 800K annual pace, strongest since early 2022.
GDP beats expectations: Q2 growth revised up to 3.8%, rebounding from Q1 contraction.
Fed outlook: rate cut on Sept. 17 reflects balancing inflation vs. jobs (remember, this is the dual-mandate for the Fed: stable prices and maximum employment).
Looking Ahead: this week brings key housing data early, followed by several major labor market reports, and concludes Friday with the closely watched September jobs report.
As always, we’ll be on standby to help when needed.
Cheers,
Drew (& Team)
