The drop was due to a sharp bond market rally, after the government's monthly inflation report came in lower than analysts had predicted.
As bond yields fell, so too did mortgage rates, which loosely follow the yield on the 10-year Treasury .
Mortgage rates had already been declining from their recent highs.
The 30-year fixed mortgage rate jumped over 8% on Oct. 19, the highest level in more than two decades.
"The interest rate rises should be over, and the Fed will have to consider cutting interest rates seriously.
Persons:
Matthew Graham, Lawrence Yun
Organizations:
Mortgage News, Treasury, National Association of Realtors, CNBC PRO
Locations:
Chatsworth, Los Angeles , California