Remember last year when the talk of tapering sent mortgage rates sharply higher from 3% to mid-4%? All this happened well before even a smidgeon of tapering was actually started by the Fed.
Well that has been reversed this week. Average fixed mortgage rates hit new lows for the year as 10-year bond yields briefly dipped below 2 percent. At 3.97 percent the average 30-year fixed rate is at its lowest level since the week of June 20, 2013 when it averaged 3.93 percent. This was also the last time the 30-year fixed averaged below 4 percent in the PMMS until this week.
Mortgage rates were down sharply following the decline in 10-year Treasury yields for the second straight week amidst continued investor skepticism regarding the precarious economic situation in Europe.
So in the course of a year, mortgage rates have gone from Dirt Cheap, to Cheap and now back down to dirt cheap. If you're in the market to refi or buy, enjoy.
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