Price relief bodes well for mortgage rates
Consumer prices rose 0.1% in March, a little less than expected. Most of the month's rise in prices came from a spike in the prices of fresh fruits and vegetables, so your typical American family didn't suffer inflation at all. While the overall CPI rose 0.1%, the core CPI was unchanged in March. Core CPI measures consumer prices except for food and energy. Medical care and new and used vehicles got more expensive, and houses, furniture and clothing got less expensive. The flat core CPI bodes well for mortgage rates, which have declined this week as investors gobble up mortgages to replace the home loans that the Fed bought in its $1.25trn spending spree.