While interest rates stayed the same last week, the Federal Reserve‘s next move could be to cut them. Last week, Fed Chair Jerome Powell emphasized that incoming economic data will influence when the central bank decides to lower interest rates.
On Friday, July’s labor report showed job growth slowing more than expected, retriggering fears of a recession. The unemployment rate increased to 4.3% from 4.1%, its highest since October 2021.
Typically, poor economic data is good mortgage rates, which track movement on longer-term bond yields (specifically the 10-year Treasury). After the most recent labor report, yields on the 10-year nose-dived and mortgage rates plunged.
Barring any significant increase in inflation, experts now predict an even greater interest rate cut at the September meeting: half a percentage point or higher instead of a quarter-percent…
