The CPI and PPI reports delivered their data, showing inflation figures slightly below expectations. However, the positive impact of these reports was tempered by hawkish comments from Federal Reserve members during recent meetings. Despite this, the overall outlook remains optimistic, as further rate cuts are anticipated. Lending partners have also responded positively, significantly lowering their lending rates over the past month.
Consumer Credit
Consumer credit increased by $8.9 billion in August, following a revised $26.6 billion surge in July, the Federal Reserve reported on Monday. This represents a 2.1% annual growth rate in August, a slowdown from the 6.3% rise in the previous month. Economists surveyed by The Wall Street Journal had expected a larger increase of $13.2 billion in August.
CPI
U.S. wholesale prices were unchanged in September, pointing to subdued inflation in the economy. This suggests that a bigger-than-expected increase in consumer prices last month is unlikely to last. Economists polled by the Wall Street Journal had forecast a 0.1% increase.
PPI
A key measure of consumer inflation increased slightly more than expected in September, which could complicate the Federal Reserve’s plan to cut U.S. interest rates twice more this year. The ‘core’ consumer price index, which excludes food and energy, rose by 0.3% for the second consecutive month, according to a government report on Thursday. Wall Street analysts had predicted a smaller increase of 0.2% for this core inflation measure.
Primary Mortgage Market Survey Index
- 15-Yr FRM rates saw an increase of 0.16% with the current rate at 5.41%
- 30-Yr FRM rates saw an increase of 0.20% with the current rate at 6.32%
MND Rate Index
- 30-Yr FHA rates saw a 0.08% increase for this week. Current rates at 6.12%
- 30-Yr VA rates saw a 0.07% increase for this week. Current rates at 6.13%
Jobless Claims
Initial Claims were reported to be 258,000 compared to the expected claims of 230,000. The prior week landed at 225,000.
What’s Ahead
There will be a very light week ahead after the release of the CPI and PPI reports, with only regular jobs data to note.