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Mission Chronicle Newsletter Oct 20, 2025

10/20/2025

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Mortgage rates continued to drift slowly downward as the government shutdown continues to leavemarkets reliant on secondary and private economic data. The Federal Reserve released its Beige Book,which reinforced analysts’ predictions that the Fed will trim rates by a quarter point at its nextmeeting. For the most part, it highlighted that manufacturing continues to struggle, inflation continuesto grow slowly, and the labor market is gradually softening. Issues with credit losses in regional banksare also creating concern that more areas of the economy are showing signs of stress.   Even if the shutdown ends this week, it will take some time for agencies to update and finalize theiroverdue reports. Fortunately, the Consumer Price Index will be released this week as it is required forCOLA adjustments to Social Security. Its impact is likely to be larger than usual. The best case formortgage rates would be a reading of 0.2% or less. This would mostly lock in another rate cut. Ofcourse, a higher reading could lower the odds of a rate cut and keep rates from falling very much. Mortgage Rates and Economic Snapshot
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