Well it is official......the bond market is fearful of inflation. Some decent CPI numbers came out this morning but that was overshadowed this afternoon by the word no bullish bond trader wants to here........INFLATION is here and rising......well on the flip side it is quite obvious with the cost of food and energy. The manufacturing, wholesalers, and retailers are going have to pass their rising costs off to the consumer, at least partially and that leads to inflation.
At the end of May mortgage rates were in the low 6s and we are just another down day away from 7% conforming rates.
Bond traders are making their feelings loud and clear to the FED they want the funds rate to be raised. The Fed meetings in 2 weeks and it will be interesting to see what Big Ben and his posse with do.
Probably nothing with the rate, but a change in the statement basically saying they are going to raise rates sooner than originally thought....we will see.