Home borrowing costs continued their trek higher in the MBA's latest survey hitting levels not seen since 2006. The 30-year fixed-rate mortgage rose to 6.81% from 6.75% with 0.97 points for the week ended October 7, 2022. Within the data, it showed that the Market Composite Index fell 2%, the Refinance Index lost 1.8% and the Purchase Index declined 2.1%. Spokesperson Mike Fratantoni said, "Application volumes for both refinancing and home purchases declined and continue to fall further behind last year’s record levels."
Inflation at the wholesale level was a bit hotter than expected and remains stubbornly high. The September Producer Price Index (PPI) rose 0.4% versus 0.2% expected and up from -0.2% in August. The year over year number increased 8.5% versus the 8.4% expected and down from 8.7% in August. Core PPI 0.3%, which strips out volatile food and energy, was inline and matched August. Year over year the Core rose 7.2% versus 7.3% expected and matches August. Tomorrow the more closely watched Consumer Price Index will be released.