US mortgage rates hit record low

Cheaper financing driven by decline in Treasury yields

TRD NEW YORK /
Aug.August 01, 2016 01:08 PM
 

The average interest rate on 30-year fixed-rate mortgages in the U.S. hit 3.36 percent Friday, matching the lowest level ever recorded.

The last time these mortgages came with a 3.36 percent interest rate was in December 2012. Driving the trend is a decline in the yield on 10-year U.S. Treasury bonds, which serve as a key benchmark for mortgages, Bloomberg reported.

The 10-year U.S. Treasury yield currently stands at 1.49 percent, down from 2.27 percent at the beginning of the year, as global investors seek safe investments amid economic uncertainty. Low treasury yields have also helped push up REIT stocks, as The Real Deal reported last week.

The Federal Reserve could raise short-term rates in September, but Sandler O’Neill analyst Alex Goldfarb told TRD last week that the impact on long-term treasury and mortgage rates would likely be limited.“Long-term rates are set by the market, and the Fed has only so much impact on the market,” he said. [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
As banks demand more collateral and developers stop making mortgage payments, analysts expect a world of pain to befall debt funds, mortgage REITs (Credit: iStock)

Mortgage REITs, debt funds face catch-22 between banks, developers

From left: Ace Watanasuparp, SVP National Director of Strategic Sales, Citizens Bank; Alan Rosenbaum, CEO/Founder, GuardHill Financial Corp; Mark Favaloro, President, New York Association of Mortgage Brokers

Home lending in the time of corona: “Underwriting is really difficult right now”

Ginnie Mae principal executive vice president Seth Appleton (Credit: Wikipedia Commons; MHS)

Ginnie Mae to use natural disaster program to help struggling mortgage servicers

(Credit: iStock)

“Kicking the can down the road”: Real estate industry says $2T relief plan doesn’t do enough

Clockwise from top left: California Gov. Gavin Newsom, Illinois Gov. J. B. Pritzker, New York Gov. Andrew Cuomo and Florida Gov. Ron DeSantis (Credit, in order: Justin Sullivan/Getty Images, Joshua Lott/Getty Images, Bennett Raglin/Getty Images, Joe Raedle/Getty Images) 

Real estate orgs call for appraisals to be deemed essential

Massive stimulus package has limited upside for real estate

Massive stimulus package has limited upside for real estate

Nonbank mortgage lenders could be left holding the bag for as much as $100 billion in late payments (Credit: iStock)

“It’s going to be a liquidity tsunami:” Mortgage firms gear up for missed payments

Colony Capital CEO Tom Barrack (Photo by Michael Kovac/Getty Images)

Tom Barrack predicts commercial mortgage market crisis

arrow_forward_ios
Loading...