Good Morning on this best day of the week Wednesday from your Hometown Lender,

We don’t recommend floating into big news events. Today was another confirmation of why.

Rate sheets today will take a hit after CPI data came in much hotter than expected. Bonds held for a while after the initial reaction, but are starting to slide a bit. The lock or float question now becomes how much worse will bonds get from here?

All of the CPI readings came in above expectations…

CPI MoM	Actual: +0.5%	Estimate: +0.3%
Core CPI MoM	Actual: +0.4%	Estimate: +0.3%
CPI YoY	Actual: +3.0%	Estimate: +2.9%
Core CPI YoY	Actual: +3.3%	Estimate: +3.1%

Now, we could go deeper, dissect the components and debate the validity, or discuss the changes in seasonal adjustments (and if you want that data, it is below)… but it doesn’t matter. The bottom line here is that inflation ticked up and markets don’t like it… and it’s bad for mortgage rates.

Tomorrow brings the wholesale inflation numbers, which could add to the misery, although not as much.

Stay safe and first, make today great!