Inflation at the consumer level remained contained in August due in part to a decline in the cost of gasoline and other energy products. The Consumer Price Index (CPI) rose by a meager 0.1% last month, down from the 0.3% increase in July. When stripping out volatile food and energy, the Core CPI increased 0.3%. Inflation continues to run on the low end of the spectrum and the Federal Reserve said it will continue to remain low for several years.
Mortgage rates edged higher this week, though they remain at three-year lows and well below what was seen a year ago. Freddie Mac reports that the 30-year fixed-rate mortgage rose seven basis points this week to 3.56% with an average 0.5 in points and fees. A year ago, the rate was 4.60%. Sam Khater, Freddie Mac’s Chief Economist says, "While there has been a material weakness in manufacturing and consistent trade uncertainty, so far, the American consumer has proved to be resilient with solid home purchase demand.”
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