6/13: MetroIntelligence Economic Update by P. DUFFY

Mortgage applications rise 26.8 percent as rates drop to lowest level since Sept. 2017

The Market Composite Index increased 26.8 percent on a seasonally adjusted basis from one week earlier, with purchase loans up 10 percent and refinance activity rising 47 percent to its highest level since 2016. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.12 percent from 4.23 percent, its lowest level since Sept. 2017.



CPI up 0.1 percent in May and 1.8 percent year-on-year

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in May and was up 1.8 percent year-on-year.  The index for all items less food and energy increased 0.1 percent for the fourth consecutive month, and was up 2.0 percent year-on-year.  The index for shelter rose 0.2 percent in May, and was up higher than any other category year-on-year at 3.3 percent.



Producer Price Index up 0.1 percent in May and 1.8 percent year-on-year

The Producer Price Index (PPI) rose 0.1 percent in May, but it wasn’t the same for goods and services.  While prices for goods fell 0.2 percent (due largely to gas prices falling), those for services rose 0.3 percent (due largely to higher prices for lodging, transportation and warehousing).  Over the past year, the overall PPI rose 1.8 percent, while the ‘core’ rate (minus food, energy and trade services) was up 2.3 percent.