- Mortgage Rates: The average 30-year fixed mortgage rate decreased this week to 6.6% compared to 6.69% last week, according to Freddie Mac
- Driven by market anticipation of a third Fed interest rate cut at the upcoming meeting next week on December 17-18
- The Consumer Price Index: was released on Wednesday
- The November Consumer Price Index showed a 12-month inflation rate of 2.7%, with a 0.3% monthly increase
- Core CPI, which excludes food and energy costs, was 3.3% annually and also rose 0.3% monthly
- All figures are aligning with forecasts
- This data signals that inflation remains under control, likely giving the Fed confidence to proceed with an anticipated rate cut
- The Fed: According to the CME Group’s FedWatch Tool, traders have placed an 99% chance of a 0.25% interest rate cut at the December Fed meeting
- Odds of a January reduction also edged higher, hitting about 23%
- What's Next:
- The Fed’s next policy meeting is scheduled for December 17-18, where their decisions could provide further clarity on the trajectory of interest rates, inflation, and economic growth.
Weekly Market Update
- Hannah Laird
- 12/13/24
