Mortgage Market Takes A Turn For Buyers

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Inflation fell in June raising the prospect of the Federal Reserve cutting rates sooner rather than later.

The Consumer Price Index inflation reading fell in June, hitting its lowest level in a year, raising the prospect that the Federal Reserve will begin to slash borrowing costs, a development that could lower the cost of home loans later in the year.Last month, CPI fell 0.1 percent on a monthly basis, and on a yearly basis, it accelerated by 3 percent slower than May's 3.3 percent, according to data from the U.S.

'Today's numbers instill more confidence that inflation is headed towards the central bank's target,' Elizabeth Renter, a senior Economist at NerdWallet, said in a note shared with Newsweek. 'It makes the likelihood of a September rate cut all the more likely, and a July cut not entirely off the table.'Housing economists suggested that the improved June inflation reading was an encouraging sign for those looking to buy a home at some point over the coming year.

 

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