10/02/2026
👉 Swipe for the quick take on the latest inflation report—and why homebuyers should care.
The Fed just got another important piece of the inflation puzzle.
📊 PCE inflation increased 0.3% in August, while annual inflation held steady at 3.4%. Core PCE—which removes food and energy—rose 0.2% for the month and remained at 3.0% annually. Bureau of Economic Analysis
Another number stood out: consumer spending jumped 0.9%, and even after adjusting for inflation, spending increased 0.6%. Consumers are still spending despite elevated prices. Bureau of Economic Analysis
🏦 Why does this matter? Core PCE is closely watched by the Federal Reserve, and inflation is still running above its 2% goal. That can influence expectations for future Fed policy—and those expectations can move the bond market that influences mortgage rates. Bureau of Economic Analysis
The takeaway: Inflation isn't accelerating year-over-year, but it isn't back to target either. One report won't determine where mortgage rates go next, so we'll keep watching the data.
📲 Thinking about buying? Let's talk about today's numbers and build a strategy around your goals—not predictions about tomorrow's rates.
Sources: U.S. Bureau of Economic Analysis, Personal Income and Outlays, August 2026, released September 30, 2026.
