June CPI Consumer Price Index has dropped for the past 12 months.

Inflation increased by 0.2% lower than the estimate of 0.3%. Y/Y inflation declined from 4% to 3%. the expected drop was 3.1%. All aspects of the Core inflation, Shelter, and Used Cars also dropped below expectations.

What this means for us is lower rates. Mortgage Bonds have responded in a rate favorable direction.

I couldn’t find a good graph of the Bond Yield movement so opted for this one.

Enjoy the rest of your week.