The second and third largest bank failures in history happened over the weekend. And the markets reacted as you would think they would. Stocks panicked. Money moved to bonds. Mortgage Interest Rates fell significantly. Anytime bond gain and stocks slide it is good for mortgage rates. But also the markets were thinking that maybe it’s time for the Fed to relax its aggressive rate hikes. Everyone is betting on a slower and more moderated rate hike attitude from the Fed in the coming months, and possibly rate CUTS starting later this year.
And today the CPI report came out, and it was in line with expectations. Still inflation is a problem, but it appears it is tempering. More hope we are seeing the end of the rate hikes, and a more gentle and softer economy.