This week brought a wave of economic data that should’ve shaken up the markets, but instead, we’re seeing… silence. I’m Bill with Franklin Loan Center, and in this latest video, I break down why interest rates are stuck despite two major signals that usually lead to improvement.
Let’s start with the GDP report, which showed the U.S. economy contracted by 0.3% – the first negative GDP print since the pandemic. That kind of news typically sends interest rates lower, as a weakening economy reduces inflationary pressure.
Then came the PCE index, the Fed’s preferred measure of inflation, which was tamer than expected. Again, in theory, that should help push interest rates down.
So why no movement?
The answer lies in uncertainty and timing. Financial markets are forward-looking, while the data we just received is backward-looking. Add in recent tariff pressures and concerns about future inflation, and it’s clear the markets are waiting for stronger signals.
For those buying or selling in Temecula Valley, this environment offers an opportunity. If you’re thinking about relocating to Southern California, now is the time to stay informed. Mortgage rates may shift quickly once clarity returns—and being prepared could be your advantage.
Whether you’re browsing Murrieta homes for sale or navigating this dynamic market as a real estate professional, understanding these economic indicators is crucial. Watch the full video to hear what may come next, and how you can prepare for a possible pivot in the market.