Mortgage Rates Are Lowest of the Year

Continued worries about European debt is pushing down the yields on US Treasuries; fixed mortgage rates tend to follow the rates on 10-year Treasury Bills.  This resulted in a drop in 30-year mortgage rates to 4.84, down from 4.93 the week before and the lowest since December 2009.

Unexpected Drop in Mortgage Rates

Rates for 30-year fixed mortgages dropped to 5 percent as uncertainty over the Greek credit crisis drove investors to seek safety in US Treasuries.  Yields on government supported bonds tied to home loans are following the drop in interest on T-Bills.  15-year fixed rates dropped to 4.36 percent.  These are the lowest rates since March of 2010.