The Consumer Price Index (CPI), which measures inflation from the consumer’s perspective, decreased by 0.1%. This marks the first significant drop in two years, contrary to expectations of a 0.1% rise.

Initial Jobless Claims, which represent individuals filing for unemployment benefits for the first time, fell to 222,000 from last week’s 239,000. Continuing Claims also decreased slightly to 1.852 million from 1.856 million.

The chart below shows the movement of the UMBS 30-year Bond. An upward movement indicates lower rates. The difference between the red lower candlestick and the July 11th green candlestick reflects a 3/8th point decrease in interest rates.

For every $100,000 borrowed, a 3/8th point drop translates to a $45 lower payment. This reduction can be significant, especially when purchasing a million-dollar home.

The second graph provides a two-year view for perspective.