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Top-tier 30-year fixed mortgage rate returns to 3-week lows
Rates were back at the prior three-week low level after July CPI came in line with consensus, with no further gains after the report.
Mortgage lenders set rates around 10am ET each day, but the bond market drives day to day changes, and rates were moving overnight before the July CPI release, Mortgage News Daily reported.
According to the outlet, forecasters were right on the headline numbers, which came in line with consensus estimates. The average top-tier 30-year fixed rate then returned “precisely” to the three-week lows seen last Friday, even though there was no additional improvement in bonds after the data.
The outlet said the market had been focused on the CPI details because July’s fuel prices had bounced back up and CPI is released about two weeks before PCE, giving it more potential to move markets. In its view, much of the improvement was already reflected ahead of the report.