The new lows came due to a combination of three factors: news headlines, economic data, and the scheduled sale of US 10yr Treasury debt.
International news about Brexit pushed down the mortgage rates. Brexit is the withdrawal of the United Kingdom (UK) from the European Union (EU), which is scheduled to take place on 29 March 2019. UK Prime Minister Theresa May plan was not approved by the Britain parliament, bringing more uncertainty to the market outcomes and pushing down the rates.
In the local market, the Consumer Price Index was lower than expected. The Consumer Price is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Low inflation is good for rates!
Finally, the 10yr Treasury auction was very strong. The Treasury auction is a good gauge of demand for bonds. Higher demand for bonds means lower rates. The results of the auction led to a bond market improvement in the afternoon. After a certain amount of bond gains, mortgage lenders will typically reissue their rates for the day.
