Home loan rates moved lower again today following another lower-than-expected reading on an inflation report. The other day’s Customer Cost Index (CPI) had a bigger effect on the underlying bond market, but today’s Manufacturer Cost Index (PPI) wasn’t far behind.
In addition, bonds did a better job of keeping the improvement into the afternoon hours. This permitted home loan lenders to drop rates a lot more than they did the other day (0.06% today versus 0.05% the other day). This takes the average top-tier 30yr fixed rate to 6.64% which is the most affordable in just over a week.