June’s Personal Consumption Expenditures (PCE) showed that headline inflation increased 0.2%, while the year-over-year reading fell all the way from 3.8% to 3%. Core PCE, which strips out volatile food and energy prices, also rose by 0.2% in June with the year-over-year reading down from 4.6% to 4.1%.
What’s the bottom line? While inflation is still elevated, it has made a big improvement from the 7% peak seen last year and is now less than half that amount at 3% on the headline reading. This welcome news not only signifies lower costs for some goods and services, but lower inflation also typically helps both Mortgage Bonds and mortgage rates improve over time.Learn more about NOVA’s Temporary Interest Rate Buydown program.