Mortgage Rate Watch
Market Update• Headline CPI came in LOWER than expected
• Inflation rose just 0.17% (vs. 0.3% expected)
• January inflation was much cooler than in typical years
• Disinflation seen in cars, food, and energy
• Core CPI (excluding food & energy) came in at 0.3% — as expected
Labor Market Update• Jobless claims continue to show a stable job market
Bond Market Update• Yesterday’s 30-Year Bond Auction helped pricing
• Inflation coming in cooler usually helps mortgage rates
• Market had a brief rally this morning, but gains faded quickly
Bottom Line:
Inflation data were encouraging, but markets remain cautious. Rates didn’t move significantly this morning despite the better-than-expected headline number.
