The Fed's preferred inflation gauge exceeded expectations in May. Meanwhile, the housing market saw soft home sales, although annual home prices continued their rise in April.

The subdued spring continues, with the inventory of new and existing homes for sale rising, and weaker home price growth than normal for this time of year. The Fed kept interest rates on hold: still worried about the impact of tariffs on inflation, and still comforted by the low unemployment rate.

The MBS Highway National Housing Index experienced a notable decrease in June 2025, dropping by eight points to a level of 34. This decline reflects ongoing economic uncertainty that continues to hinder housing activity this spring.

Reaching the Fed's 2% Core PCE goal may be challenging in the near term, potentially until early 2026, because of upcoming low replacement figures. What does this mean for Fed rate cuts this year?

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