Scott  Hodge

Scott Hodge


License #: 01977659

Homeport Residential

Email Me

Will January's Inflation Data Delay Interest Rate Cuts

12 January 2024 Mortgage Interest Rate Update

This week began with many of the Federal Reserve Governors pushing back on the idea of an early rate cut in 2024. Yesterday’s highly anticipated Core Price Inflation report revealed that December’s CPI data was unfortunately higher than expected, with a year over year increase of 2/10ths of a percent. Despite the higher than expected CPI, markets remained relatively calm with the 10-year yield initially rising by 8 basis points before returning to pre report levels.  

The Producer Price Index or PPI which is the average change in prices over time for producers of domestic goods & services that was released this morning turned out 2/10ths of a percent lower than expected, and as of writing this, treasury yields are decreasing as the markets are trying to access how the PPI data will impact future federal reserve policy.  The good news is that heading into Martin Luther King weekend interest rates are slightly better than last week with the 30-year fixed rate conventional loan averaging 6.69% nationwide and the 30 year fixed rate VA loan is averaging 6.02%. I will see you next week with another update.

Have Questions?