The week's headline economic report showed that inflation rose far more than expected in July, yet mortgage rates barely reacted and ended the week essentially unchanged. Bizarre to say the least. The July Consumer Price Index (CPI), the most widely watched inflation indicator, rose at the fastest annual rate since 1991. The core rate, which excludes the volatile food and energy components, rose at a 2.5% annual rate. The Fed's perceived comfort level for core inflation is between 1.5% and 2.0%. Wierd to say the least....but definitey worth noting.... |
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