As frequent readers know, the remaining effects of inflation are isolated sectors like autoinsurance and the lagging shelter component. The U.S. labor market has normalized, with strongemployment and reduced competition among employers. Finally, economic growth remains moreresilient than many had expected. Given these conditions, the Fed seems ready to cut policy rates,leading us to topic of the month: mortgage rates. In our January newsletter, we debunked the oft-reported premise that the Fed sets mortgagerates. In reality, mortgage rates and the…