March\u2019s Consumer Producer Index showed headline inflation rising 0.9%, a strong reading driven largely by higher oil prices, but it came in right in line with expectations. On a year-over-year basis, inflation increased from 2.4% to 3.3%, with gasoline prices surging 21% following the closure of the Strait of Hormuz.<\/p>\n
Core inflation, which excludes volatile food and energy prices, was more encouraging. It rose 0.2% for the month\u2014slightly below estimates\u2014and 2.6% annually, also coming in a bit lighter than expected.
\nShelter costs continue to gradually moderate, increasing 0.27% in March and now running at 3% year over year. Rent rose just 0.19% for the month, which equates to about a 2.3% annual pace and is moving closer to real-time data trends, though there\u2019s still some lag to work through.<\/p>\n
Overall, the bond market, where mortgage rates come from, largely shrugged off the report. While headline inflation was elevated, it was delivered as expected, and the softer core reading helped keep bond reactions relatively muted. As bond prices increase, interest rates decrease and if we see oil drop in price and inflation soften, you will start to see mortgage rates follow suit. <\/p>","protected":false},"excerpt":{"rendered":"El \u00cdndice de Consumo y Producci\u00f3n de marzo mostr\u00f3 una inflaci\u00f3n general que aument\u00f3 0,9%, una cifra s\u00f3lida impulsada en gran medida por los precios m\u00e1s altos del petr\u00f3leo, pero que se ajust\u00f3 a las expectativas. En comparaci\u00f3n con el a\u00f1o anterior […]<\/span>","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[16],"tags":[12,317,405,47,30,400,326],"class_list":["post-5184","post","type-post","status-publish","format-standard","hentry","category-30-second-market-update","tag-30-second-update","tag-bond-rates","tag-gas-prices","tag-housing-market","tag-interest-rates","tag-iran-conflict","tag-stock-market"],"acf":[],"yoast_head":"\n