- The Fed is expected to hold rates at its Oct. 28 meeting after raising the target range 25 basis points to 3.75%-4% in September, its first hike since 2023.
- September CPI rose to 3.7% annual inflation, and surging oil prices tied to the U.S. war with Iran lifted September producer prices.
- Fed funds futures priced less than a 10% chance of another hike at the October meeting, while nearly 75% expect at least one hike by year-end, per CME Group's FedWatch tool.
- The 10-year Treasury yield near 5% keeps the average 30-year fixed mortgage rate close to 7.4%, according to Mortgage News Daily.
Quotes
“Inflation is still the No. 1 problem in the U.S. economy, and there are a lot of signs it is getting more broad-based”
“Higher longer-term rates are doing more damage to consumer wallets, as they've risen more than short-term rates, and are weighing heavily on refinancing activity, homebuying and vehicle sales”