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Rates Down to 2-Month Lows; Housing Not Doomed to Repeat Past; Applications Decline

Rates Down to 2-Month Lows; Housing Not Doomed to Repeat Past; Applications Decline

Mortgage rates technically hit the lowest levels in 2 months today. The catch is that they were already pretty close and that today's improvement wasn't necessarily that big. In fact, most borrowers will see the same interest rate in today's quotes with the only difference being a slight adjustment in upfront costs/credits. We'd been waiting somewhat eagerly for today's Consumer Price Index (CPI)--a key inflation report with a consistent track record (at least in the past year) of causing movement for rates. When CPI is stronger than expected, rates tend to rise. When it's weaker, rates fall--all other things being equal. Today's CPI came out largely in line with expectations. The important "Core" number showed annual inflation right in line with the 2.1% forecast. In other words, our big potential
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