Mortgage Bonds Drop as Markets Await Key CPI Inflation Report and Housing Data Shows Slowdown

By Matt Brienen

Published: 2024-11-13T18:23:00+00:00

Stocks are mixed and mortgage bonds are sharply down to start the day, with attention turning to tomorrow’s CPI inflation report, which could influence the bond market's direction. Housing data shows a notable slowdown, with buyer activity and price growth both falling in November as mortgage rates rebounded sharply after months of declines.

Economists expect October’s Consumer Price Index to reveal a slight uptick in inflation, forecasting a 0.2% monthly increase in headline inflation (pushing it to 2.6% year-over-year) and a 0.3% rise in core inflation (to 3.4% year-over-year).

Key data releases this week include CPI, mortgage applications, initial jobless claims, and producer price index numbers, adding further economic insight. Technical indicators show mortgage bonds trading below their 200-day moving average, with analysts adopting a cautious outlook until inflation data is released.