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The reversal didn't take long.  After Wednesday's Retail Report scared markets into a tizzy, today's Consumer Price Index calmed them considerably and reversed the upward trend seen over the last 48 hours.

With a flat reading of 0.0%, CPI was lower than the 0.2% expectation of 0.2%, but based on the swift reversal, it appears that the expectation was even higher than that.  Too many traders got caught leaning the wrong way and mortgage rates tumbled as they corrected their positions.

A flat reading on CPI lowers the year-over-year Core CPI growth to 2.6%.  This is not optimal, but it's low enough to please the Fed (for now).  Over the past few months, Core CPI (which excludes the price of food and energy) has clocked in at 0.2%, 0.1% and 0.0%.

Looks like a soft landing.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.