Mortgage Rates Matter Most for Inflation

Apollo Chief Economist

Financial conditions have eased to levels seen before the Fed started raising rates, but the Fed is not going to worry much about the ongoing rise in the S&P500 and tightening of credit spreads because what matters for the inflation outlook is the mortgage rate, which continues to put downward pressure on housing inflation, see charts below.

Bloomberg, Apollo Chief Economist
Zillow, BLS, Haver Analytics, Apollo Chief Economist

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