Mortgage rates are better this morning.
It’s another busy morning in terms of economic and financial news. Much of the market’s attention is focused on this morning’s Consumer Price Index (CPI) release. The report showed that although month-to-month consumer prices jumped higher than expected the annual pace of inflation remains muted. Year-over-year core inflation increased by the lowest level since 1966. Tame inflation is good for mortgage rates.
Also helping mortgage rates is a weaker than expected consumer sentiment survey. Bad news for the economy is good news for mortgage rates.
Weaker than expected earnings reports from General Electric, Bank of America, and Citigroup is also weighing on stocks. When investors sell stocks they often reinvest into “safer” investments such as mortgage-backed bonds which helps rates.
Congress passed financial regulation overhaul yesterday. Buried in the 2,300 page bill are significant new rules for the mortgage industry brought about by our very own Senator Merkley. I plan to blog on this topic next week.
Current outlook: floating