Storm Warnings…

  • January 16, 2014

bariumtoonWe were alerted to a winter storm warning here in Detroit, Michigan this morning. Forecasts called for a light snow shower/some flurries. Are we really at the point where flurries necessitate high alert? Turning my attention to what happened today in the market; an increase in continuing unemployment claims was the catalyst. This week’s continuing claims report was reported worse than what was expected and the bond market rallied. When the bond market rallies, consumers reap the benefit and rate sheet pricing gets better. Diving into the numbers:

  • The Consumer Price Index was released at 8:30 this morning. Yesterday we had the Producer Price Index and today we had the CPI which is another measure of inflation. It matched expectation, so no shock waves there. 1.5% rise in the last year for those counting.
  • Ben Bernanke gave a speech today where he defended quantitative easing saying it was a help to the economy and didn’t envision a bubble forming in asset prices. He pointed to the inflation rate which I listed above, communicating the Fed’s inflation target of 2%

By Jeremy VanBuskirk, Quicken Loans Capital Markets Analyst
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