April CPI News Due Tuesday
14 May 2007
Mortgage Rate Outlook: Float
Today’s rates were flat pending economic news.ﾃつ ﾃつ ﾃつ The most important economic news on deck this week is April’s CPI (Consumer Price Index).ﾃつ It will give us a sense of inflationary pressure on the economy from the consumer’s perspective. Last week’s PPI showed us decreased inflationary pressure on the production side of the economy.
Wednesday we will see April’s housing starts and Industrial production.ﾃつ ﾃつ ﾃつ Overall Tuesday has the largest likelihood of causing rate volatility as the CPI reportﾃつ bears a lot of weight in the bond market.ﾃつ Also, we must consider the stock market.ﾃつ A continued rally could hurt the chances of lower rates, and a pullback on stocks could help mortgage rates.
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