I never thought I’d hear these words. Here’s the exact quote:

“Inflation is on a lower path than we were potentially expecting. I think inflation is on the right path, as log as we don’t let it get too low”.

Even Fed Pres Minneapolis Neel Kashkari said even after the 50bp cut the Fed is still restrictive. He wants another 50bp by end of the year.

What’s coming up this week.

• Tuesday – Cash Shiller Home Price and FHFA house Index
• Wednesday – Mortgage Applications and New Home Sales
• Thursday – GDP, Initial Jobs Claims
• Friday – Personal Consumption Expenditures – PCE.

PCE is the big news of the week. If expectations come in at 0.1% in August that will put inflation at 2.3% down from 2.5%.

In my view, interest rates are falling. How much they’ll drop remains uncertain, but we’re finally seeing some light at the end of the tunnel. For years, low inventory has been a challenge, with homeowners locked into 3% rates and buyers either unable to afford homes or waiting for rates to decrease.

If you’re a homeowner looking to move, now’s the time to tune up your finances and get pre-approved—just in case you find your new dream home. For home buyers, inventory is up 22% from last year, and more homes are hitting the market, with more expected in the future.