Mortgage Rates Inch Down to 2-Month Lows

Mortgage rates technically hit the lowest levels in 2 months today.  The catch is that they were already pretty close and that today's improvement wasn't necessarily that big.  In fact, most borrowers will see the same interest rate in today's quotes with the only difference being a slight adjustment in upfront costs/credits. 

We'd been waiting somewhat eagerly for today's Consumer Price Index (CPI)--a key inflation report with a consistent track record (at least in the past year) of causing movement for rates.  When CPI is stronger than expected, rates tend to rise.  When it's weaker, rates fall--all other things being equal.  Today's CPI came out largely in line with expectations.  The important "Core" number showed annual inflation right in line with the 2.1% forecast.

In other words, our big potential market mover ended up being mostly equivocal in its recommendation for movement!  Bonds (which dictate rates) also took cues from geopolitical risks stemming from Trump's "missile" tweet regarding Syria/Russia.   Geopolitical flare-ups tend to push rates lower.  

This Daily Mortgage Rate Update is provided in partnership with Mortgage News Daily.