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Consumer prices rose 0.1 percent 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 percent, 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 $1.25 trillion spending spree.
The week's rate decline surprised some of our Rate Trend Index voters, including me. Last week, a plurality of RTI voters predicted that rates would increase this week.
The prediction of skyrocketing rates came from the mortgage loan officers to induce fear in borrowers. What a bunch of hooey, anyone could look at world financial markets and realize mortgage bond investments were still the best place for institutional investors to place there money. Where else were they going to put it?
Look at the plot of mortgage rates over the last year, for crying out loud. It's wobbled with an amplitude of MAYBE a quarter point. Yet, you and the other knuckleheads on this site scream "rates are going up for sure" and "rates skyrocket" when they jump 10 basis points. SKYROCKET?!?
Get a grip.