Oops, CNBC Tanked the Market
Bad reporting triggered a bond sell-off
Happy Friday — Brian Manning here with your weekly market update. This week was filled with economic data, inflation reports, and a market-moving media blunder. Let’s unpack what actually happened and how it impacts mortgage rates, buyers, sellers, and the housing market as a whole.
Trade Talk With China: Some Progress… Maybe
We started the week with headlines around a potential U.S.-China trade deal. While there’s no finalized agreement yet, some momentum appears to be building. That said, it’s tough to get a clear picture—news outlets in the U.S. and China report conflicting details, making it difficult to assess real progress.
CPI Report: Inflation Still Driven by Guesswork
On Tuesday, we received the Consumer Price Index (CPI) — one of the Fed’s key inflation measures.
The report came in tame, with inflation dropping from 2.4% to 2.3%, a move in the right direction. But here’s the issue: 43% of CPI is based on shelter, and of that, 43% is based on “Owner’s Equivalent Rent.”
What does that mean?
It’s literally someone calling homeowners and asking: “How much would you rent your home for (without utilities)?”
Let’s be real — most homeowners have no clue. If you asked me that question today, I’d just throw out a number. This outdated, subjective data has a huge impact on the inflation report, and unfortunately, the Federal Reserve relies on it when making rate decisions.
PPI Report and CNBC’s Big Mistake
On Thursday, we got the Producer Price Index (PPI) — inflation data at the wholesale level. Expectations were for PPI to drop by 0.2%.
Here’s where it got wild:
- CNBC mistakenly reported that PPI had risen by 0.5%
- Bond markets panicked — triggering a heavy sell-off
- Moments later, CNBC corrected their report: PPI had actually dropped by 0.5%
This mistake caused major market volatility. Rates initially moved higher due to the error, but once the correction came through, bond buyers returned.
Bottom line: markets are incredibly sensitive to inflation headlines — even when they’re wrong.
Market Takeaway
Despite the drama, both CPI and PPI showed positive movement in inflation, which is generally good news for mortgage rates. However, the way inflation is measured (especially shelter costs) remains outdated and misleading.
Until the Fed acknowledges these flaws, rate relief may continue to be slower than expected. lost.
Realtor Events & Community Happenings
🏡 “Winning in a Buyer’s Market” Class
- We hosted our first session this week in Boulder — completely sold out!
- Denver is next — also sold out.
- Upcoming sessions: Colorado Springs, plus return events in Boulder and Denver.
- Want to attend? RSVP early — seats go fast.
🎉 BolderBoulder Party – May 26
Join us for our favorite event of the year!
- No RSVP needed — just show up
- Hosted at my house, right on the course
- Live music, great food, amazing energy
- It’s a Boulder tradition you don’t want to miss
Need Mortgage Help This Weekend?
I’m available 7 days a week, 8 a.m. to 8 p.m.
Whether you’re a buyer, seller, or just exploring your options, feel free to reach out.
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Questions? Concerns? Ready to get started with my strategic buyer consultation?
Call me any day of the week, Monday- Sunday to get connected & learn about your options.
It’s never too soon to understand what you can afford!
303-500-3839
Brian@BrianManningTeam.com
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