Turmoil in global markets has been good for mortgage rates. China’s slowdown and cratering oil prices have created volatility in the markets and spurred investors to flee to safety in government bonds.
Demand for safe assets pushed bond yields lower, and the yield on the benchmark 10-year Treasury note fell below 2 percent this week. The movement of the 10-year Treasury is one of the best indicators of whether mortgage rates will rise or fall. When yields go down, rates tend to go down.
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average fell for the third week in a row, sinking to 3.81 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.92 percent a week ago and 3.63 percent a year ago.
The 15-year fixed-rate average dropped to 3.1 percent with an average 0.5 point. It was 3.19 percent a week ago and 2.93 percent a year ago.
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