2024 Outlook – Inflation Rates

Inflation Rates Show Significant Improvement in Early 2024,
Prompting Speculation on Federal Reserve’s Next Move

Things are moving quickly as we start 2024. We were excited to see rates come down in mid- December and are left wondering what will happen this year. While we aren’t expecting to see the lows of 2020 and 2021, it is nice to see them normalize.

Inflation has made significant progress lower after peaking in 2022, with the headline reading now at 3.4% (down from 9.1%) and the core reading at 3.9% (down from 6.6%). Remember, the Fed began aggressively hiking the Fed Funds Rate (the overnight borrowing rate for banks) in March 2022 to try to slow the economy and curb runaway inflation. Following eleven hikes in this cycle, the Fed pressed pause at their last three meetings in 2023, as signs of cooling inflation grew. Will the progress we’ve seen on inflation be enough for the Fed to shift from rate hikes to rate cuts later this year, as many economists expect?

Capitol Bank planted roots in Madison in 1995 and ever since our story has been closely entwined with that of the local community and people we serve. We always recommend that you are proactive and get preapproved ahead of time, but we can definitely help if that is not the case. As a community bank, we are able to react quickly. We are available nights and weekends for preapprovals and to guide you through your homebuying experience.

We also want to get the word out regarding credit bureau trigger leads. As a part of the mortgage and preapproval process your lender will pull a credit report, which may result in the sale of your contact information as a ”trigger lead” by credit bureaus. While Capitol Bank does not sell your information, trigger leads can happen with any lender.

Your credit report is specifically for mortgage transactions, but credit bureaus may sell your information to other lenders. To avoid these calls, we suggest you OPT OUT at www.optoutprescreen.com or by calling (888) 567-8688. Processing may take up to 5 days, with up to 60 days to stop all “prescreened” offers.