U.S. mortgage rates fall for first time in six weeks as labor market and inflation cool

Odaily News – U.S. mortgage rates edged lower for the first time in six weeks, following fresh data indicating a cooling labor market and suggesting that the impact of the Iran conflict on last month's inflation may be limited. Freddie Mac said in a statement Thursday that the average rate on a 30-year fixed-rate mortgage fell to 6.67% from 6.69% the previous week, ending a five-week streak of increases. Still, rates remain near their highest level in over a year. Data showed that the Iran conflict appears to have had only a limited effect on inflation. U.S. consumer prices rose at a slower pace for the second consecutive month in July, with energy, gasoline, and food prices all declining from the prior month. Another measure of core inflation also held steady at the five-year low set in February. Combined with the July jobs report, the latest economic conditions in the U.S. are seen as easing pressure on the Federal Reserve to raise interest rates in the coming months.

According to the CME Group's FedWatch tool, following the release of the Consumer Price Index (CPI), investors' probability of a 25-basis-point rate hike at the Fed's September meeting fell to 38% from 48% the previous day.