From the Desk - Economic Commentary
Scott Hofer, Member Strategies Manager - 6/11/2025
U.S. stocks were slightly higher this morning as investors take a breather from the latest rally and digest the latest inflation data and trade talks with China. On the economic front, the consumer price index rose less than expected posting a 0.1% increase in May and 2.4% year over year. Excluding food and energy, the core CPI posted a 0.1% increase for the month and 2.8% year over year, also lower than expected. Continued weakness in energy prices helped offset increases in other categories, and items expected to increase due to tariff increases actually posted declines.
In housing, the Mortgage Bankers Association’s mortgage survey indicated that mortgage applications increased 12.5% week over week. The increase was due to the Refinance Index increasing 16% and the Purchase Index increasing 10%. The average interest rate for conforming 30-year fixed-rate mortgages increased 1 bps to 6.93%.
U.S. Treasury yields are mixed this morning, with the 2-year Treasury yield up 1.6 bps to 4.02%, the 5-year Treasury yield up 0.4 bps to 4.09% and the 10-year Treasury down 0.4 bps to 4.47%. Advance rates are lower across the curve.
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