Rates Down On Weak PPI Report
17 June 2008
Mortgage rates declined today by approximately .25 to the points, on several pieces of economic data which suggest a weak economy.
First, the May Producer Price Index (PPI) showed a big unexpected decline in its overall reading, although its core reading, which excludes oil and food prices, met expectations.
Second, May Housing Starts were weaker than expected, confirming a continued weak housing sector.
And finally, May’s Industrial Production showed weaker than expected output, suggesting weakness int he production sector. All good news for mortgage rates and bonds.
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