Home loan rates had an excellent day yesterday, moving within 0.01% of the most affordable levels in more than a month. They dropped simply a bit more today and are now officially the most affordable they’ve been considering that Might 14th.
Today’s enhancement was more of an afterthought, however helps legitimize yesterday’s heavy lifting as something besides a freak coincidence. The only word of caution is that the last few weeks of any given quarter can see raised volatility in a random pattern due to factors to consider in the trading world (home loans are eventually based on trading levels in the bond market).
In terms of nuts and bolts, bonds got today’s modest increase after PCE inflation data can be found in on target. This does not appear like something that ought to spark a response, however the “target” is simply a typical forecast. Some traders might have been anticipating hotter inflation and were therefore ready to buy a few bonds when those fears didn’t emerge.