Here’s the weird part—remember stagflation? That’s when shoppers pump the brakes on spending, forcing businesses to freeze or even drop prices.

As inflation rises, buyers are starting to take control of their wallets.

Personal Consumption Expenditures – PCE only rose 0.4% and a revision downward for February. Spending numbers across several reports show weakness. Consumers have a heavy debt loan with 9.7 million individuals behind on their student loans.

Q1 GDP Estimate has been revised lower from -1.8% to -2.8%.

On one hand, inflation is rising, which usually pushes mortgage rates higher. But on the other, consumers are tightening their wallets, which helps cool inflation down. It’s like the economy is playing tug-of-war with itself!

Rates are down today and expected to continue through the end of Spring. I am headed out to see the sights in Chicago and will see you Monday.

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