Rachel Siegel at WP:
Inflation eased again in August, dropping to the lowest level in more than three years and locking in expectations that the Federal Reserve will cut interest rates next week for the first time since the pandemic’s early days.
Data released Wednesday by the Bureau of Labor Statistics showed prices climbed 2.5 percent in the 12 months ending in August. That was a noticeable improvement over the 2.9 percent notched in July, in part because of falling gas prices. Prices also climbed 0.2 percent over the previous month.
Scott Sowers at WP:
Mortgage rates fell on Thursday to their lowest level since April 2023 — 6.2 percent for a 30-year fixed-rate mortgage, down from 6.35 percent a week before, according to Freddie Mac.
That’s a sharp drop from the high of 7.8 percent recorded last October and welcome news for would-be home buyers who have been priced out of the property market, as well as homeowners who bought at high rates and are eager to refinance. It also comes as the Federal Reserve gets ready for its next policy meeting next week, when it is expected to announce the first interest-rate cut since it began hiking rates in March 2022 to combat spiraling inflation.
