Despite seemingly threatening inflation data, mortgage rates managed to hit 5-month lows thanks to the Producer Price Index (PPI). Although PPI typically doesn't have as big an impact as the Consumer Price Index (CPI), recent examples have shown its influence on the market. Today's PPI numbers came out higher than expected, causing initial concern for rate increases. However, rates actually ended up moving lower, albeit slightly. The underlying components of the PPI data did not translate to consumer-facing inflation metrics, preventing any significant uptick in rates. Bonds initially reacted with panic but ultimately settled in stronger territory without any major fluctuations. This allowed the average lender to slightly lower rates. Overall, the ability to maintain low rates despite unfavorable inflation data was a victory in itself.