You Tube link to see rate update video: http://www.youtube.com/watch?v=rPx8IDngbYw
There’s a lot to cover today. First off, The Producer Price Index (PPI) which was reported this morning came in much hotter than expected. Both the Core and headline readings on inflation at the wholesale level of the economy came in double expectations.
The S & P Case Shiller home price index was released today. Although much of the data was bleak for the 20 markets covered in the index Portland, Seattle, & Charlotte were the only three that DID NOT show losses. This is great news and one that should be shared with clients in these markets.
Lastly, consumer confidence came in well below expectations. This shouldn’t be a huge surprise given the amount of negative press on the economy and housing markets. Watch today’s you tube video to understand what all this information means for mortgage rates.
Producer Price Index (PPI)
The Producer Price Index (PPI) is a measure of price changes in the manufacturing sector of the average price level for a fixed basket of capital and consumer goods paid by producers. It measures average changes in selling prices received by domestic producers in the manufacturing, mining, agriculture, and electric utility industries for their output.
Core CPI takes out food and energy as a factor.