🚨 The 10-year Treasury just pushed above 4.9% and is flirting with 5%.
This morning's Producer Price Index showed wholesale inflation running at 5.4% year over year, up from 4.8% just one month ago.
And underneath that number:
âš¡ Energy: +4.2%
📦 Goods: +1.1%
🚛 Diesel: +24.1% IN ONE MONTH
The monthly headline number was actually right in line with expectations. But the year-over-year acceleration, combined with surging energy costs, is NOT what the bond market wanted to see.
Why should homebuyers care?
Mortgage rates tend to move with the bond market, and a 10-year Treasury approaching 5% puts more upward pressure on borrowing costs.
Now all eyes turn to tomorrow's Consumer Price Index.
And with the Fed meeting next week, that report just became VERY important.
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Russell McDonald | NMLS 290837 | Broker CA DRE 01150730
Wymac Capital Inc | NMLS 18766 | Broker CA DRE 01121628
Real Estate Broker – CA Dept of Real Estate