Mortgage rates plunge to below 7% as inflation declines

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After a government report revealed that inflation had decreased in October and contributed to a drop in bond yields, mortgage rates dropped significantly.

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Acc. to Mortgage News Daily, the 30-year fixed rate average dropped by 60 basis points, from 7.22% to 6.62%.

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As a result, along with market gains overall, homebuilder companies such as Lennar, DR Horton, and Pulte rose

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The steep rise in rates over the previous six months has severely hurt such stocks

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In October, the Consumer Price Index increased more slowly than forecast.

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Because mortgage rates loosely track the yield on the 10-year Treasury, bond yields fell dramatically as a result

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According to Matthew Graham, chief operating officer of Mortgage News Daily, "this is the best argument to date that rates are done rising

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but confirmation requires that next month's CPI tell the same story."

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It has always been necessary to have two reports of this nature in quick succession, along with Fed recognition that the inflation story is changing

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