Inflation Eases to 3.4% in Positive Sign for Mortgage Rates

Inflation slowed a bit in July, a hopeful sign that could help temper the steady upward slide of mortgage rates.The Consumer Price Index Report released Wednesday showed headline inflation rose just 0.1% in July and cooled to 3.4% annually, while core inflation rose 0.2% monthly after a flat June and eased to 2.5% on the year.That's a good sign for mortgage rates, which have been on a steady upward march from 6.43% July 2 to 6.69% August 6, a 13-month high, according to Freddie Mac. "None of this is likely to move an increasingly divided FOMC and prediction markets concur," Realtor.com Senior Economist Jake Krimmel said. "The odds of a hold at the September meeting ticked up just two percentage points."So what does the market need to break the rise in inflation? Lower prices for gas and core goods. Gas prices have wobbled a bit but have a strong hold on consumer sentiment. Core goods rose 0.2% in July after falling for two months. That's the best showing of the year. But it also doesn't yet reflect the new tariffs coming online.But, Krimmel said, the housing market has avoided another "cruel summer"—the National Association of Realtors found Tuesday that existing home sales activit...