Mortgage bond prices opened slightly higher Wednesday morning adding to the gains seen Tuesday afternoon. Rates are finding support from bond friendly economic news released this morning.
In news released at the open, consumer prices rose 0.2% last month and the core rate, which excludes the volatile food and energy costs were unchanged. Economists expected CPI to rise 0.4% and 0.1% respectively. That data was bond friendly.
On the housing front, housing starts stood at 519k, lower than expectations for a read of 600K. This is further evidence the housing market is facing some stiff headwinds.
Traders are now waiting for stocks to begin trade at 9:30 to help gauge interest rate direction.