Consumer prices were up 8.3 percent across the U.S. in August compared to a year earlier, the government just announced. And yet, prices were down compared to the 8.5 percent jump in July 2022 and a four-decade high of 9.1 percent in June, according to the L.A. Times.
On a monthly basis, prices rose 0.1 percent.
Economists point to lower gas prices and cheaper used cars as two major factors behind the slowed U.S. inflation in August. Mortgage rates, however, seem to have not received the memo.
The average rate on a 30-year fixed mortgage hit 5.89 percent last week, according to a Freddie Mac survey— the highest the lender has recorded since 2008. As a whole, mortgage rates are double from what they were a year ago.
The Fed is expected to announce another increase in its benchmark interest rate next week, expected to push lending rates even higher.