The average rate on the 30-year, fixed-rate mortgage fell three basis points, the 15-year fixed plunged seven basis points and the 5/1 ARM dropped two basis points, according to a NerdWallet survey of daily mortgage rates published by national lenders Wednesday.
The 30-year fixed is six basis points higher than a week ago and nine basis points lower than one year ago. A basis point is one one-hundredth of one percent.
Mortgage rates follow bond markets, and bond traders responded Wednesday to the latest news on inflation. The Consumer Price Index for October was up 2% year over year, down from the 2.2% annual inflation rate in September.
But that’s not the whole story. The core CPI — which ignores volatile food and energy prices — was up 1.8% compared with the previous October. That was an increase over the 1.7% core CPI for the 12 months ending in September.
The Federal Reserve has set a goal of 2% core inflation. This slight increase in the core inflation rate is one step toward the Fed’s goal, and an indication that the economy is heading in the direction set by the central bank.
MORTGAGE RATES TODAY, WEDNESDAY, NOV. 15:
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.