POST TAGS
Market UpdatesBlog posted On February 13, 2024
January’s consumer price index came in hotter than expected this morning, causing stocks and mortgage bonds drop. Mortgage rates have the inverse reaction of mortgage bonds, so it’s likely that rates will trend higher. Looking long-term, experts are speculating that this higher inflation report could impact the possibility of a rate cut in May.
Inflation disappoints, but has some silver linings
The consumer price index climbed 0.3% month-over-month in January, which was higher than the 0.2% expected. Annually, inflation fell from 3.4% to 3.1%, but experts were expecting it to be at 3%. Core inflation, which strips food and energy, was at 0.4% month-over-month, which was higher than the 0.3% expected. Annual core inflation was at 3.9% vs. the 3.7% expected. Here’s why the numbers came in where they did:
|
Things that made inflation rise
|
Things that made inflation cool
|
Coming up this week
The National Association of Home Builders (NAHB) is releasing the home builder sentiment index later this week. It’s expected to rise. Housing starts and building permits are also scheduled for release. They’re both expected to rise.
Reach out if you have any questions.
Sources: Bloomberg, MBS Highway
