Financial News Update

• September Producer Price Index rose for the first time in three months up 0.2%.
• The Core PPI also rose 0.2% month over month.
• Annually, PPI rose 2.6% from 2.8% in August, while the Core was up 2.5% from 2.3%.
• The Consumer Price index (CPI) rose 0.1% in September from August while the Core CPI also increased 0.1%, both below the 0.2% expected.
• The annual CPI fell to 2.3% from 2.7% in August and down from 2.9% in July. The Core remained at 2.2% year over year. The year over year 2.3% was a welcome sight for Bonds and Stocks. The year over year inflation rate has dropped considerably over the last 2 months. Why keep raising short-term rates???
• Chicago Fed President Charles Evans said he is not worried about inflation as long as it remains near 2%. The last Fed outlook showed that the annual Core PCE, the Fed’s favorite inflation gauge, will remain near the current level of 2% through 2021. So, why keep raising short-term rates???

Rate Update–

• Conventional 30 year 5.125%/APR 5.242%
• FHA 30 year 4.75%/APR 5.69%
• FHA 30 year with a 580 Fico Score 5.50%/APR 6.804%
• FHA 30 year with a 550 Fico Score 5.875%/APR 7.054%
• VA 30 year 4.75%/APR 4.96%
• VA 30 year with 550 Fico Score 5.75%/APR 6.21%
• CHFA First Step (FHA loan) Down Payment Assistance Program 30 year fixed at 5.125%/6.165%
• CHFA Conventional Down Payment Assistance Program 30 year fixed at 5.375%/APR 5.970%
• Conventional 3% down with NO PMI 5.75%/APR 5.923%
• Jumbo 30 year 4.75%/ APR 4.867%
• Jumbo 7/1 ARM 4.25%/ APR 4.25%