What is OER?
OER stands for Owner’s Equivalent Rent. It’s the survey-based measure the government uses to estimate housing costs. In short, homeowners are asked: “How much could you rent your home for, unfurnished and without utilities?”

Yes, seriously. And here’s the kicker: OER makes up about 33% of the Consumer Price Index (CPI), meaning this one survey-driven number has an outsized influence on reported inflation. it rose 0.4% last month.

CPI report showed inflation rose 0.4% hotter than expected and brough overall inflation from 2.7% to 2.9%.

Energy prices rose 0.7%, a reminder that energy costs touch every corner of the economy, from production to transportation and everything in between.

My take: Yesterday’s 10-year Treasury auction came in strong, which helped push yields lower, and with them, mortgage rates. The trend continues: rates are drifting down. It may not feel dramatic, but the steady, consistent movement lower is exactly what we want to see.

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