IE can pick up it's settings automatically from a URL and it's configured to look for the settings in your DHCP server (in your case that's probably your router). It hasn't found the details there so it first looks for a machine in the domain called wpad. In your case your "domain" is .home so it looks for wpad.home.
For some reason wpad.home is resolving to the same address as your router, but as your router is only seeing it as a HTTP request it thinks you are trying to login to the webadmin interface.
Turn off the auto configuration option in IE (Tools -> Internet Options -> Connections -> LAN Settings) and it shouldn't happen again.
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