![\"November](\"https:\/\/www.mbsquoteline.com\/home\/wp-content\/uploads\/2022\/11\/november-2022-cpi-report-surprisingly-falls-below-its-consensus-mortgagetime-mbsquoteline-chart-1024x512.png\")
<\/a><\/figure><\/div>\n\n\nSector Influence on November 2022 CPI Report<\/h2>\n\n\n\n
As investors react to the November 2022 CPI report, analysts point to various market sector activity. Helping the figures come in below the expected levels, used car prices dropped 2.4% in October. Apparel and medical care services also posted steep monthly declines.<\/p>\n\n\n\n
Meanwhile, shelter (housing) costs, which account for roughly one-third of the CPI index, continued to post significant gains in October. However, shelter costs generally operate with a lag. Current indicators of shelter costs (such as newly signed rental agreements) suggest that this area will provide downward pressure on overall inflation readings in coming months.<\/p>\n\n\n\n
Federal Reserve Plans for Future Hikes to the Federal Funds Rate<\/h2>\n\n\n\n
With the November 2022 CPI report, the Federal Reserve reaffirms their ongoing strategy. Currently, inflation remains far above the readings around 2.0% seen early in 2021. The Fed previously stated that 2.0% is still their target level.<\/p>\n\n\n\n
To help reduce inflationary pressures and reach this goal, the Fed plans to raise the federal funds rate at future meetings. However, the magnitude of additional rate hikes anticipated by investors dropped sharply due to the CPI data. For example, investors nearly evenly split between 50 and 75-basis point increases before the report\u2019s release. Now, investors widely anticipate a 50-basis point jump at December\u2019s meeting.<\/p>\n\n\n\n
Looking Ahead After the Latest Inflation Data<\/h2>\n\n\n\n
After the publication of the November 2022 CPI report, investors hope for more specific Fed guidance on the pace of future rate hikes and bond portfolio reduction. Next week, Retail Sales release on Wednesday. Consumer spending accounts for over two-thirds of U.S. economic activity. Thus, the retail sales data represents a key measure of the health of the economy.<\/p>\n\n\n\n
Similarly, Import Prices come out on Wednesday. Later, the Housing Starts report publishes on Thursday. Finally, the latest Existing Home Sales is announced on Friday.<\/p>\n\n\n\n
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With the publication of the November 2022 CPI report, mortgage rates experienced a sharp decline by week’s end. Never miss an update with MBSQuoteline. To receive by-the-minute updates on mortgage-backed securities,\u00a0try our platform free for 14 days.<\/strong><\/a><\/p>\n\n\n Stay connected with MBSQuoteline on social media by following us on Facebook<\/a>, Twitter<\/a>, and LinkedIn<\/a>.<\/p>\n\n\n\n All material Copyright \u00a9 Ress No. 1, LTD (DBA MBSQuoteline) and may not be reproduced without permission. To learn more about the MortgageTime\u2122 newsletter, please contact MBSQuoteline at 800.627.1077<\/a> or info@mbsquoteline.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" As the inflation data from October came out, the November 2022 CPI report surprisingly fell below its consensus forecast.<\/p>\n","protected":false},"author":9,"featured_media":4615,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[426],"tags":[545,518,81,442,472,405,538,31,368,56,33,441,517,448],"class_list":["post-4610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgagetime","tag-2022-election","tag-balance-sheet-reduction","tag-consumer-price-index","tag-consumer-spending","tag-core-cpi","tag-existing-home-sales","tag-federal-funds-rate","tag-federal-reserve","tag-housing-starts","tag-inflation","tag-mbs","tag-mortgage-backed-securities-2","tag-rate-hikes","tag-retail-sales"],"_links":{"self":[{"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/4610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/comments?post=4610"}],"version-history":[{"count":5,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/4610\/revisions"}],"predecessor-version":[{"id":4618,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/4610\/revisions\/4618"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media\/4615"}],"wp:attachment":[{"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media?parent=4610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/categories?post=4610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/tags?post=4610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"November](\"https:\/\/www.mbsquoteline.com\/home\/wp-content\/uploads\/2022\/11\/november-2022-cpi-report-surprisingly-falls-below-its-consensus-mortgagetime-mbsquoteline-data-1024x512.png\")
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