Mortgage rates fall sharply to under 7% after inflation eases
Mortgage rates fell sharply Thursday after a government report showed that inflation had cooled in October, prompting a decline in bond yields. The average rate on the 30-year fixed plunged 60 basis points from 7.22% to 6.62%, according to Mortgage News Daily. That matches the record drop at the start of the pandemic. The rate, however, is still more than double what it was at the start of this year. Pending home sales see big drop Oct. 28, 2022 01:39 In turn, stocks of homebuilders such as Lennar, DR Horton and Pulte jumped, along with broader market gains. Those stocks have been hammered by the sharp increase in rates over the past six months. The Consumer Price Index rose in October at a slower pace than expected. As a result, bond yields dropped sharply , and mortgage rates followed, as they follow loosely the yield on the 10-year Treasury. So what happens next? More from CNBC Massachusetts voters approve ‘millionaire tax.’ What it means for the wealthy Google now allows Spotify...