The Consumer Price Index, a measure of the cost of living across the country, was released this morning. The report shows that prices of the stuff we buy are up 1.7% from last year. The Fed looks for the inflation reading to be in the 2.0-2.5% range and adjusts interest rates up to keep the cost of living down. Where rates are on the floor, the CPI reading is under the target rate and the Fed is meeting today, I would imagine that the chances of tapering just dropped under the 25% mark. This is good news for those of you who enjoy low interest rates—and low prices for that matter.
30 Year rates are in the 3.875%-4.5% range today (APR will most likely be higher, depending on loan amount and loan to value ratio).