Drew 2: CPI Release & Treasury Auction Update: What It Means for Mortgage Rates

14 Aug 2026 · 2 min

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In this short market‑update video, loan officer Andrew Postell explains two recent macro events—a 0.1% rise in the Consumer Price Index (CPI) and a $40 billion U.S. Treasury auction—and how they influence mortgage rates. He notes that the modest CPI increase keeps inflation near target, allowing mortgage rates to sit at a four‑week low, but stresses that the 10‑year Treasury yield, which drives mortgage pricing, rose after the auction because demand was weak and the Treasury had to raise yields to attract buyers. Industry consensus suggests the 10‑year yield (and thus mortgage rates) will stay elevated until at least 2027 as the Fed works to bring inflation back to 2%. Postell then advises homebuyers—especially first‑time buyers—that they are in a strong negotiating position right now, as buyer competition is low and they can secure favorable deals. He wraps up by encouraging viewers to use this information in their home‑buying strategy.

Chapters

Hey now, Drew 2 time. It's time for a market update. 2 really important things happened this week. The CPI was released and there was a federal treasury auction. Did you see that? Let's talk about the CPI for a minute. I'm a loan officer. How does the CPI affect mortgage rates? So the CPI, the inflation increased by 0.1%. 0.1%. Hey, every little bit hurts our bottom line on inflation. But as far as mortgage rates go, that's not a terrible number. We are actually at a 4-week low on mortgage rates. All right. But the other piece of the puzzle, that means that the Treasury won't decrease their rate until 2027. That's what most industry experts are saying until they get this inflation back to where they want it, which is 2%. They're not going to be able to decrease that rate. Remember, we aren't affected by that, mortgages. We are affected by the 10-year Treasury, which is why the Treasury auction was so important to pay attention to for mortgages. So there was a $40 billion Treasury auction and nobody wanted the Treasuries, which meant that the federal government had to increase the rate of return to try to get people to buy them. That affects the 10-year Treasury bond. 10-year Treasury bond did increase some today. It's not panic mode, but it just means that rates will stay in this range for the foreseeable future. So if you are a home buyer, if you're out there buying a home, specifically first-time home buyers, you are getting the best deals you've seen in a long time, 'cause you're the only buyer out there. Everybody else is nervous about buying a home. Don't be, but negotiate in your position, 'cause you're gonna get a good deal. You might be the only buyer that that person sees for a while. Hey, I hope some of this makes sense. I'm Andrew Postell. Thanks for watching today's Drew 2. Drew 2.