![\"Fed](\"https:\/\/www.mbsquoteline.com\/home\/wp-content\/uploads\/2023\/06\/fed-pauses-rate-hikes-volatility-mortgage-markets-mortgagetime-mbsquoteline-chart-1024x512.png\")
<\/a><\/figure><\/div>\n\n\nConsumer Price Index Records 4.0% Year-Over-Year Increase<\/h2>\n\n\n\n
In May, the Consumer Price Index (CPI), a widely monitored inflation gauge, recorded a 4.0% year-over-year increase. As a result, this fell in line with consensus expectations. This figure represented a decline from the 4.9% annual rate observed in the previous month. Moreover, it marked the smallest increase since March 2021. The drop in the annual inflation rate was primarily driven by a substantial decline in energy prices.<\/p>\n\n\n\n
To better gauge short-term volatility, investors often focus on core CPI, which excludes food and energy components. In May, core CPI matched consensus forecasts with a year-over-year increase of 5.3%. Although this figure has declined from its peak of 6.6% in September 2022, it remains significantly above the 2.0% levels observed earlier in 2021, which is the Fed’s target level.<\/p>\n\n\n\n
Retail Sales Reports Moderate 0.3% Increase<\/h2>\n\n\n\n
Given that consumer spending constitutes a significant portion of the U.S. economy, retail sales data serves as a vital indicator of economic health. In May, retail sales experienced a moderate 0.3% increase compared to April, surpassing the consensus forecast, which had anticipated a slight decline.<\/p>\n\n\n\n
Notably, restaurants and bars demonstrated another strong month, while sales of building materials and garden equipment experienced a substantial 2.2% surge, benefiting from the spring season.<\/p>\n\n\n\n
Looking Ahead After Fed Pauses Rate Hikes<\/h2>\n\n\n\n
Moving forward, investors will closely monitor the Federal Reserve’s future monetary policy plans as they seek further elaboration from officials. This week’s economic data releases will primarily focus on the housing sector, with Housing Starts scheduled for Tuesday and Existing Home Sales for Thursday. Please note that mortgage markets will be closed on Monday in observance of Juneteenth.<\/p>\n\n\n\n
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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 Fed paused rate hikes, mortgage markets experienced a volatile week, concluding the with a slight increase.<\/p>\n","protected":false},"author":9,"featured_media":5006,"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":[81,472,31,56,33,441,448],"class_list":["post-5004","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgagetime","tag-consumer-price-index","tag-core-cpi","tag-federal-reserve","tag-inflation","tag-mbs","tag-mortgage-backed-securities-2","tag-retail-sales"],"_links":{"self":[{"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/5004","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=5004"}],"version-history":[{"count":2,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/5004\/revisions"}],"predecessor-version":[{"id":5009,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/5004\/revisions\/5009"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media\/5006"}],"wp:attachment":[{"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media?parent=5004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/categories?post=5004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mbsquoteline.com\/home\/wp-json\/wp\/v2\/tags?post=5004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Fed](\"https:\/\/www.mbsquoteline.com\/home\/wp-content\/uploads\/2023\/06\/fed-pauses-rate-hikes-volatility-mortgage-markets-mortgagetime-mbsquoteline-data-1024x512.png\")
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