Inflation cooling means better rates!

Everyone keeps asking when mortgage rates are going to drop, and June's data gave us the first real clue.

In this update, I break down what actually moved the needle last month:

Inflation cooled. Consumer prices fell 0.4%, annual inflation slowed to 3.5%, core inflation held steady, and wholesale prices declined thanks to lower energy costs. Cooler inflation matters because the Fed watches it closely when deciding where rates go.

Housing was mixed. Pending home sales dipped 5.4% from May to June, ending a four month streak of gains and showing just how rate sensitive buyers still are. But housing starts jumped 19%, a strong comeback that could bring more inventory to a tight market. Building permits slipped 3% as builders stay cautious on affordability and construction costs.

The broader economy held up. Retail sales rose 0.2%, and a stronger 0.7% once you strip out cheaper gas, so the consumer is still spending. Keep an eye on oil, which is climbing as U.S. and Iran tensions escalate.

Whether you are buying your first home, refinancing, or financing a commercial deal, I handle both residential and commercial loans nationwide.

Consumer prices are finally cooling, and the Fed is watching closely.

Annual inflation has dropped to 3.5%, signaling a potential shift in monetary policy. This breakdown explains how these numbers directly impact the likelihood of upcoming interest rate cuts and what it means for your wallet.