Fixed U.S. mortgage rates dropped for the fifth straight week amid increased volatility in world financial markets. The U.S. 10 Year Treasury yield has seen even a more dramatic decline, dropping from nearly 2.30% on 12/30/2015 to 1.69% today. That’s 61 basic points in just over 5 weeks. The last time the treasury bond market dropped so sharply was in 2012. Global markets and stocks have been rattled this year by signs of a global slowdown and substantial drops in the price of oil and commodities. Investors have sought the safe haven of U.S. Treasury’s, pushing down long-term U.S. rates.
Mortgage rates have fallen sharply despite the Federal Reserve’s recent decision to raise the short-term rate it controls for the first time since 2006.
As of today mortgage rates are approaching the best levels seen since April of 2013.