MARKET UPDATE: Rates Keep Us Guessing

Inflation is keeping us on our toes…but markets still feel confident.

ANALYSIS

The much-anticipated monthly consumer inflation report was released this week. It was just slightly above expectations and rates bumped up – but just a little. That’s a big change from the last 18 months, when the slightest misfire on inflation led to massive rate spikes.

It shows how much the market mentality on rates has changed.

Indeed, the very next day another inflation report, this time based on manufacturer’s prices, showed a solid drop. And rates shifted back down. 

Taken altogether this week stopped short of providing resounding confirmation that inflation is defeated. That said, it didn’t send any signals that were too troubling either.

WHAT’S NEXT

I forecast it will be extremely cold! (Okay, that one way easy.) Initial jobless claims tend to be a market mover and come out on Thursday. If we see it come in even a little high, expect a nice improvement.

And that is it for this week. Please keep us in mind for client’s looking for a knowledgeable and responsive lender with great rates. Have a great weekend!