Updated on July 14, 2020 10:05:14 AM EDT

This morning’s sole relevant economic release was Junes Consumer Price Index (CPI) at 8:30 AM ET. It revealed a 0.6% rise in the overall reading and a 0.2% increase in the more important core data that excludes food and energy costs. Both readings were a bit higher than expected, meaning inflationary pressures at the consumer level of the economy were stronger than thought. Since inflation erodes the value of a bond’s future fixed interest payments and makes them less attractive to investors, we should consider the data slightly unfavorable for mortgage rates. However, it appears the news had little impact on this morning’s mortgage rates.
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