Daily News 8/19/2015

August 19, 2015

Wednesday – August 19

Inflation at the consumer level remained tame in July as rising housing costs were offset by by little changes in most other consumer goods. The Bureau of Labor Statistics reported on Wednesday that the inflation reading Consumer Price Index rose 0.1% in July, below the 0.2% expected and down from the 0.3% registered in June. It was the smallest increase in six months. Shelter costs rose 0.4%, the biggest gain in more than eight years, while year-over-year housing costs are up 3.1%, the largest annual increase since 2008.

Mortgage application volume rose in the latest week as interest rates to purchase and refinance remained near historic lows. The Mortgage Bankers Association (MBA) reported that its Market Composite Index, a measure of total loan application volume, rose 3.6% in the latest week. Within the numbers it showed that the refinance index was up 7%, while the purchase index gained 0.1%. The MBA also reported that the average contract rate for a 30-year fixed rate mortgage with conforming loan balances ($417,000 or less) decreased to 4.11% with points increasing to 0.37.

Breakfast may be getting more expensive in the coming months as egg prices soar at supermarkets. Due to the worst avian flu outbreak in 30 years there is limited supply which has caused egg prices to spike this year, and prices will continue to rise. The current price for a dozen of eggs are at a range between $1.99 to $4.49 and could hit $6 per dozen by the fall. So don’t be surprised by the higher price of a bacon, egg and cheese at your local breakfast spot in the coming months either.