Interesting, as problems develop in the Middle East there is a flight to safety to US bonds. This is pushing the yield on the 10-year bond lower, therefore lower mortgage rates. If this revolution spreads to other countries, then you might see the rates drop even lower.
U.S. mortgage rates fell for a second week, tracking a drop in Treasury yields as violent unrest in Libya sparked demand for relatively safe investments.
The average rate for 30-year fixed loans declined to 4.95 percent in the week ended today from 5 percent, according to Freddie Mac. The average 15-year rate was 4.22 percent, down from 4.27 percent a week earlier, the McLean, Virginia-based mortgage-finance company said in a statement.
Turmoil in Libya has sent oil prices surging and spurred speculation that an economic recovery may slow. Yields on 10- year Treasury notes, which are benchmarks for some consumer loans, fell to a three-week low today. The decline has pushed mortgage rates down from a 10-month high, making home buying more affordable as demand begins to recover.Read it all
Before this mortgage rates were above 6 percent was Nov. 2008. At the time, the regular 30-year fixed rate was 6.33 %, meaning a $200,000 credit would have fixed a monthly payment of $1,241.86. With the average rate now 4.14 percent, the monthly payment for the similar amount of mortgage would be $971.04, a variation of $270 per month for anybody refinancing at this time.
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