PCE, Personal Consumption Expenditures is the Fed’s favorite measure of inflation year over year, the index decreased from 3.4% to 3%. CPI as we mentioned yesterday was down as well.

Looking at the last 6 months of core readings (strips our food and energy), which Powell mentioned at the last meeting shows the core inflation at 2.4%.

What this means is the rates will likely continue to drop. The Fed’s may cut rates as soon a March. Three months ago, this was not even on the radar.

If you are looking to sell or ready to buy, get prepared. If your a Realtor, get your clients pre-approved and ready to go.

We are here to help with the pre-approval process.