The Bureau of Labor Statistics reports that the inflation reading Consumer Price Index (CPI) rose 2.9% in the 12-months ending in June from 2.8% in May. It was the largest increase since the year ending February 2012. The energy index increased 12.0% over the past year, as the gasoline index increased 24.3%.
CPI increased 0.1% in June versus the 0.2% expected after rising 0.2% in May. The Core CPI, which strips out food and energy rose 0.2% in June, in line with estimates, up 2.3% year over year. The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Mortgage rates were essentially unchanged in the latest week and remain historically low. Freddie Mac reports that the 30-year fixed-rate mortgage was 2.53% with an average 0.50 in points and fees for the week ended July 12. Freddie Mac said, "A record number of people quit their job last month, most likely for a new opportunity with higher wages and better benefits. This positive trend, along with these lower mortgage rates, should increasingly give some previously priced-out prospective homebuyers the financial wherewithal to resume their home search."
Annual consumer inflation rises. Energy prices surge year-over-year. Mortgage rates unchanged.
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