Rates Drop as PPI report allays inflation concerns
11 May 2007
Mortgage Rate Outlook: Float
The bond market opened up today as this morning’s economic news eased concens about inflation.
April’s PPI showed a larger than expected rise, but a weaker than expected core data reading. This means that when we exclude volatile food and energy prices, producer price levels were weaker than expected. This is strong news for mortgage rates.
Tuesday of next week we will see April’s Consumer Price Index, another inflation indicator, which could either support or contradict today’s sentiment that inflation is in check.
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