The PPI Shock Nobody Saw Coming #shorts #economy #housing

Added: 2026-05-17

[00:00:00]Here's the problem for anybody looking to buy a house right now or refinancing.

[00:00:04]It's inflation. So today we got the PPI, the inflation number on producer inflation. And it's nowhere even close to what we even expected. So my thought this morning when I saw the producer inflation spiking up 1.4% month over month, that's a 6% inflation on the producer inflation. My first thought is these things are going to go really bad today. So folks, if you're a homeowner, home buyer, hopefully you're a realtor loan officer. Today we're going to talk about the inflation number that just came in, the producer inflation. It's out of control. So I'm going to try to explain to you guys what the market's reaction to this is going to be. And also President Trump, him and a slew of CEOs are over in China, hopefully trying to tamper the Iranian situation and maybe make some deals there. So without further ado, folks, let's get over to today's rates, what's going to happen, and I'll try to give you them do my best because a lot of these numbers, they're bad, but the market reactions are pretty good. So mortgage rates Thursday, they ended yesterday at 6. 56. A little bit higher than I thought. Mortgage rates I expected during the Iranian war to be about 6 and a quarter to 6 and a half.

[00:01:06]Little inflated right now. It's just these these inflation numbers. So let's get over to see what I like to do each day is I like to start with the chart.

[00:01:14]And I'll be honest with you. Here's the first thing I thought of. Got up this morning, I get ready, and I put all my all the data up on the the boards, put CNN and on one or CNBC and Fox News on the other one, and I'm watching the reactions. I'm like, okay, this producer inflation, it's going to be hot. But then the number hit and I'm like, this is going to be bad, real bad. So let me show you the market reactions on this in the bond markets, and it actually recovered quite a bit. So here's the head scratcher. Here's today.

[00:01:41]Okay, so this is all you have to understand if you're new to the channel.

[00:01:44]That number up through there, if it's red, that's bad news. That's normally means mortgage rates are going up. You need that number to go at least about 10 points to really move. Okay, so this morning we came out of the the and it just plummeted. It went down through here right after the market announcements and that's down to 98 02 or 98.

[00:02:03]So, what is that? 10 points from there.

[00:02:04]So, it was down 12, 13, 14 points right out the gate and I thought this thing would continue to tumble. And again, when this thing goes down, it means mortgage rates go up. Let's look at a two day two day chart and I keep telling everybody, don't look a gift horse in the mouth. I was telling people last week about last Wednesday, you might want to look at lock in these levels because there's some uncertainties in the market. So, here's this week. This is today and yesterday. So, again, down is bad. If you look at a five day chart, man, I was telling people last week about there here, you might want to lock in because I'm seeing some bad news coming down the pike. So, let's get over to Why do we watch these inflationary numbers?