Rates for home loans fell to the lowest in a year as inflation cooled and investors braced for a slowing global economy.
The 30-year fixed-rate mortgage averaged 4.37% in the February 14 week, mortgage guarantor Freddie Mac said Thursday. That was down from 4.41% in the prior week. The 15-year adjustable-rate mortgage averaged 3.81%, down three basis points. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.88%, down from 3.91%.
Those rates don’t include fees associated with obtaining mortgage loans.
Mortgage rates track the 10-year U.S. Treasury note TMUBMUSD10Y, +0.00% . Bonds have become more attractive over the past few weeks amid global growth concerns and worries about a possible second government shutdown. That’s good news for borrowers: bond yields decline as their prices rise.
The popular 30-year-fixed has increased in only one week so far this year, and has averaged 4.44% compared to 4.54% for all of 2018.
Source – Market Watch, Andrea Riquier,Published: Feb 15, 2019, https://www.marketwatch.com/story/mortgage-rates-hit-a-12-month-low-as-signs-of-economic-slowdown-dog-the-housing-market-2019-02-14
