1. The FOMC held rates at 3.5%–3.75% as expected.

• Three Fed presidents (Beth Hammack, Neel Kashkari, and Lorie Logan) dissented, preferring to raise rates by 25 bps.

• The FOMC statement was barely changed.

• The markets reacted dovishly initially, before falling into the close.

– The market’s implied rate cuts for 2026 fell.

– The dollar weakened.

2. Mortgage applications fell as the 30-year fixed mortgage rate ticked up.

• Refinancing activity also declined.

Back to Index

1. Household credit creation accelerated in June, driven by robust mortgage lending and strong expansion in consumer borrowing that comfortably beat consensus estimates.

• Mortgage approvals edged up.

• M4 money supply growth accelerated.