Mortgage rates have fallen for the second day in a row, driven by the recent release of inflation data and comments from Federal Reserve officials and the Treasury Secretary nominee. The 30-year fixed rate has dropped back to levels last seen on January 2nd, two weeks ago.
The key catalyst was yesterday’s Consumer Price Index (CPI) report, which showed palatable inflation data. While today’s Retail Sales data wasn’t as significant, Waller, a member of the Federal Reserve, provided reassuring comments about expected inflation and potential rate cuts in the first half of the year.
Waller’s remarks did not spark a large reaction from bond markets, but were met with a friendly response nonetheless. More promising was Bessent, the Treasury Secretary nominee, who emphasized his commitment to austerity in government spending. This stance is linked to higher interest rates, making his comments welcome news for investors.
Source: https://www.mortgagenewsdaily.com/markets/mortgage-rates-01162025