Mortgage ratesÃ‚Â moved higherÃ‚Â today, even after many lenders offered mid-day improvements in the afternoon. Ã‚Â Bond markets (which underlie rate movement) reacted negatively to this morning’s economic data. Ã‚Â The biggest report of the morning–Retail Sales–was slightly weaker than the median forecast. Ã‚Â Typically, this would HELP rates. Ã‚Â But some traders were expecting the number to be even weaker compared to the forecast (yes, this is like a forecast of a a forecast). Ã‚Â
In separate data, several inflation metrics came in stronger than expected. Ã‚Â Given the fact that markets are fairly worried that inflation will pick up under the Trump administration, it’s not unfair to expect rates to react when data suggests inflation (or inflation expectations) may already be moving higher.