PCE inflation data

Mortgage rates remain elevated even as new economic data points to a slowing economy. Bonds initially rallied on a cooler PCE inflation report and a weak jobs report, but those gains have since evaporated, with bond market volatility—rather than economic fundamentals—driving mortgage rates higher. Commentators are discussing strategies homeowners and buyers can use to counter rising mortgage costs amid the uncertainty.

Markets are looking ahead to the latest US Core PCE price index release, the Federal Reserve's preferred inflation gauge. Analysts at StoneX ask whether the data is stale or still significant for Fed policy, as investors weigh how the reading could shape expectations for interest rate decisions.