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Mortgage rates expected to stay steady after inflation report

Core inflation in July matched expectations, reducing fears of fresh price spikes and dimming the odds of a Fed rate hike in September.

Reported · Written up by our desk · Mortgages

Mortgage rates are expected to see little change after an inflation report came in as expected, according to Redfin News. The outlet said the read appears to keep the near-term rate outlook stable for homebuyers, even as the Federal Reserve’s next move remains a key factor.

Redfin News pointed to cooling uncertainty around inflation, noting that core inflation in July came in almost spot on with expectations. That outcome, the outlet said, undercut concerns that mortgage rates would need to reprice higher in the absence of an agreement involving Iran.

The piece also highlighted that mortgage-rate volatility could return later this week as investors weigh upcoming data, including the July jobs report, and as markets test the Fed’s rate path.

Overall, Redfin News said expectations are that mortgage rates will likely hold steady following the latest July Fed meeting, but uncertainty may build again as fall approaches.

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