Why did mortgage rates suddenly drop

Couple working on mortgage cost | mortgage rate news

What’s the ‘why’ behind the recent drop in mortgage rates?

The recent drop in the national average for mortgage rates has generated a lot of attention. But why did such a significant change occur so quickly? The team at Forbes dives into this exact question. The key takeaway is that mortgage rates can be very sensitive to new economic data. When the recent inflation reports came out, the 10-year treasury bond reacted, and mortgage rates followed.

Forbes also points out that we only have one set of data points on inflation. The markets will need to see additional information before we know if this is a trend or just a single data point.

Why are traders turning their attention to December 13th?

According to Mortgage News Daily, the bond market is already focused on the next set of inflation data that comes out ahead of the next Federal Reserve meeting. Matthew Graham of Mortgage News Daily reports that, “In the bigger picture, traders wish they could hit the fast forward button to December 13th and 14th,” and  “No one’s really sure what to do between now and then.”

We may have to wait almost a month to see the next set of data and understand how the Federal Reserve is going to react.

Are there any key dates this week?

The economic calendar for Thanksgiving week looks as follows:
Monday, November 21st

Chicago Fed national activity index

Tuesday, November 22nd

No announcement scheduled

Wednesday, November 23rd

Durable goods orders
Core capital equipment orders
Initial & continuing jobless claims
UMich consumer sentiment index & 5-year inflation expectations
New home sales data
FOMC minutes

Thursday, November 24th

Thanksgiving Day holiday

Friday, November 25th

No announcement scheduled

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