Prospective homebuyers view a bedroom while touring a house for sale in Helotes, Texas.
Matthew Busch | Bloomberg | Getty Images
As fears over the coronavirus roil global financial markets, investors are rushing to the relative safety of bonds. As a result, mortgage rates are falling. The 30-year fixed mortgage loosely follows the yield on the 10-year Treasury.
The average rate on the 30-year fixed hit a recent high in December of 3.84%, but slid steadily last week and is now falling more steeply, according to Mortgage News Daily.
“3.625% is widely available, and that was already getting to be the case last Friday,” said Matthew Graham, chief operating officer at Mortgage News Daily. “Today brings 3.5% into the mix for more than just a few of the most aggressive lenders.”
That is the best rate since early September, and Graham said he believes the market is “only one to two solid days away from 3.375%.”
Falling rates couldn’t come at a better time for the housing market, as strong demand…