Because we never tire of hearing about low mortgage rates I thought I would share an article that was published today on CNN Money by Les Christie.
NEW YORK (CNNMoney) –Mortgage rates dropped again this week, sending both 15-year and 30-year fixed-rate loans to record lows.
According to mortgage giant Freddie Mac, the average rate on the 30-year fell to 3.34%, 0.06 percentage point lower than last week. The 15 year fell 0.04 percentage point to 2.65%The new lows reflect increased demand for government bonds, according to Keith Gumbinger, of HSH.com, a mortgage information company.
“It’s a flight to quality,” he said. “You may have noticed that stocks sold off last week after the election.”
When investors turn away from stocks, they often park their cash in Treasurys, and the added demand brings down bond yields. Mortgage rates tend to track those yields down.
A secondary factor, said Gumbinger, was a drop in demand for loans, some of which was related to Superstorm Sandy, according to the Mortgage Bankers Association.
Continue reading the full article on CNNMoney by clicking here.