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
(iStock)

Older Americans increasingly saddled with housing debt

Older Americans increasingly saddled with housing debt
(Getty, iStock)

Mortgage applications to buy homes decline for fourth straight week

Mortgage applications to buy homes decline for fourth straight week
(iStock)

Black homeowners pay $13K more for home loans: study

Black homeowners pay $13K more for home loans: study
While some Americans have benefited from low mortgage rates, others find themselves locked out (iStock)

Homebuyers with bad credit increasingly locked out of the market

Homebuyers with bad credit increasingly locked out of the market
(Getty)

Has homebuying peaked? Mortgage applications sink 2%

Has homebuying peaked? Mortgage applications sink 2%
A new report by CoreLogic showed mortgage payments that are over 120 days delinquent rose to 1.4 percent in July, its highest level since 1999 (iStock)

Mortgage delinquencies jumped to highest rate in 20 years

Mortgage delinquencies jumped to highest rate in 20 years
Snapdocs CEO Aaron King (Snapdocs; iStock)

Snapdocs raises $60M amid record demand for mortgages

Snapdocs raises $60M amid record demand for mortgages
AIG CEO Brian Duperreault and Brooklyn Navy Yard project, with Andrew Joblon and 980 East 149th Street (Turnbridge, Brooklyn Navy Yard)

These were the top outer-borough loans in September

These were the top outer-borough loans in September
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...