Rates Up as CPI Raises Inflation Concerns

Bonds went negative this morning as the market digested a stronger than expected CPI report from December. We could see rates increase by .125 to price today. The CPI rose .3%, higher than the .2% reading expected. This is not good news for mortgage rates as it indicates the consumer prices are rising, a key indicator of inflation. December Industrial Production report showed now change, while it was expected to decline. This is also stronger than expected and bad news for mortgage rates. This afternoon we'll get the Fed Beige Book report, which details economic activity regionally and is used by the Fed at their meetings to make key decisions about interest rates.

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National Rates

Loan Type Today
30 Year Fixed   5.63
15 Year Fixed   5.47
5/1 Adjustable   5.85

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