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Mission Chronicle Newsletter Oct 27, 2025

10/27/2025

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Mortgage rates slipped lower as the delayed release of the Consumer Price Index came in with mixednumbers. The annual headline number came in at 3.0%, a decrease of 0.1%. The annualized corereading, which factors out highly volatile components, came in at 3.0%, an increase of 0.1%.   With the government shutdown heading into record territory, the Fed meets this week to set thenation’s monetary policy. While some private economic data points have been released, the Fed isflying essentially in the dark. The market is predicting another quarter-point rate cut, but the reality theFed is facing is becoming more challenging. Inflation trends are pointing upward, with inflation stillfar from the Fed’s target. While there are signs that the labor market is weakening, it remains strong.The safest bet for the Fed may be to stand pat and wait for more data, but the market might bestunned. A rate cut with a very tentative policy statement could be the safer option. Either way,mortgage rates are likely to slowly trend downward, fearing what data may be released in the future. Mortgage Rates and Economic Snapshot
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