Daily Market Update 5/17/16

Rates were little changed Tuesday as stronger than expected economic data had little impact on mortgage-backed securities.  The April Consumer Price Index (CPI) rose 0.4%, above the consensus forecast of 0.3%, and was 1.1% higher than one year ago.  Core CPI, which excludes volatile food and energy components, increased 0.2%, in line with expectations, and was 2.1% higher year-over-year.  April Housing Starts rose 7% to an annual rate of 1,172,000.  Building Permits came in a bit lower than expected.  Industrial Production jumped 7%, well above the consensus of 2%, representing the largest monthly increase since November 2014.  No other key data will be released today.

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