Mortgage rates hadn't changed much over the past few business days, even though they arguably should have moved a bit higher yesterday. That made today's adjustment slightly more abrupt.
Why was there an adjustment?
Mortgage rates are based primarily on the trading levels in the bond market. In turn, the bond market takes cues from a multitude of factors big and small. Among the biggest considerations for bonds are the various regularly scheduled economic reports. Among those reports, inflation data is traditionally very important to bonds. And finally, among inflation data, today's Consumer Price Index is probably the most widely followed....(read more)