Mortgage rates are mostly unchanged from yesterday.
This morning the Labor Department released the monthly Consumer Price Index (CPI) which showed headline inflation coming in a little hotter than expected. However, when you back out volatile food and energy measurements inflation pressure appears to be soft which is interest-rate friendly news.
Mortgage-backed bond prices (MBS) initially reacted positively to the CPI release but those gains were wiped out when stocks rallied following another economic report on capacity utilization.
We will remain in a neutral position to see how the technical trading patterns shape up. Be prepared to lock.
Current outlook: neutral