From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 7/15/2026
U.S. equity markets are trading higher this morning with technology stocks leading the advance as investors respond to additional signs that inflation pressures are easing. Investor sentiment improved after June producer prices came in below expectations, reinforcing the softer-than-expected CPI report released earlier this week and reducing expectations for near-term Federal Reserve rate hikes. Additionally, New York Fed President John Williams suggesting inflation may have peaked also added to the positive tone. Markets continue to monitor higher oil prices and developments in the Middle East.
Producer prices declined unexpectedly in June, providing further evidence that inflation pressures moderated during the month. The PPI fell 0.3% month-over-month, compared with expectations for no change. On a year-over-year basis, producer prices remained elevated, rising 5.5%. Core PPI, excluding food, energy, and trade services, increased 0.1% in June and was up 5.1% from a year earlier, indicating that some underlying price pressures remain present.
Mortgage activity softened in the latest MBA survey as rates remained elevated. For the week ending July 10, 2026, total mortgage applications declined 2.7% from the prior week. Purchase application activity fell 7%, while refinance demand increased 4%. The report showed that the average interest rate of a conforming 30-year mortgage increased seven basis points to 6.65%, matching the highest level since August 2025.
Subscribe to our daily From the Desk newsletter to get economic commentaries and updated market rates sent directly to your inbox.
Subscribe Here