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Homebuyers Celebrate: Mortgage Rates Head Down Again

Posted on January 27, 2016

The average rate charged for a 30-year fixed mortgage in the U.S. again fell below 4% last week, according to Bankrate.
With the Fed acting to push rates higher this year many experts had predicted that this benchmark mortgage would top 5% before long.

However, turmoil in the global economy has intervened, sending investors to the “safe haven” of U.S. Treasuries. When U.S. government debt gets popular with investors, yields on 10-year Treasury notes go down.
As Bankrate points out, mortgages are closely related to yields on long-term government bonds.
For now at least, this means that homebuyers get a reprieve from what might otherwise be a rising-interest-rate trend. Enjoy it while it lasts.