Mortgage rates edged lower again Thursday, reaching their lowest level since May 14 after Wednesday’s larger drop left them within 0.01 percentage point of that mark.
On-target PCE inflation data gave bonds a modest lift, as traders who had braced for hotter price readings bought when those fears failed to materialize.
That follow-through helped validate the prior day’s sharp rate decline as more than a one-off move, even though Thursday’s improvement was comparatively small.
Late-quarter trading can still inject random volatility into mortgage pricing because home-loan rates ultimately track moves in the bond market.