CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – Pretty good economic news Wednesday with the operative number being zero. The new Consumer Price Index for May came out in the morning and showed no change… which means inflation was flat for the month. University of Virginia economist Ed Burton tells Morning News it kind of depends on what you were buying with new cars, air travel, and gasoline prices down… but home prices and rent continued up.

The Federal Reserve in the afternoon decided to take no action on interest rates, meaning no hike in a year. Burton says, in fact, we’re likely to see mortgage rates DROP. He says the drop in the 10-year yield from 4.40 to 4.28-percent suggests mortgage rates are going to reign in, and it’s a good bet by next week they’ll go under 7-percent. As of Thursday morning, they were 7.35-percent… but he wouldn’t be surprised to see the high 6s next week.