Something that is extremely newsworthy is the fact that today’s bond rally created an inversion of yields, the first time it has happened since 2007. That means that rates on longer-term securities are lower than securities with shorter terms. In essence, under today’s scenario, it is beneficial to loan the government money for a much shorter period of time as it pays more interest than longer term securities. The relevance to mortgage rates is that this is widely considered to be a predictor of an economic recession. Following the dovish or concerning comments about the economy from the Federal Reserve earlier this week, this is a hugely bond-friendly event. The better news is that there appears to be more room for yields and mortgage rates to fall. I would not be surprised to see the 10-year yield get some resistance in the area of 2.37%. Since mortgage rates tend to track bond yields, good news is for yields to continue to fall.