Mortgage Rates Drop for Second Week with 30-Year
According to Bloomberg News, mortgage rates in the United States dropped as markets across the
globe dwindled as Russia continued to strike Ukraine.
What’s the whole story?
For a 30-year old loan, the average was 3.76%, down from 3.89% in the last week, as stated by
Freddie Mac in a statement on Thursday.
This was the second straight drop for the rates, keeping a tab on yields from the 10-year Treasuries,
which slid this week to the lowest since January. The war in Ukraine has sent the financial markets
into turmoil and given rise to a tendency to take refuge in safer assets like US government bonds.
This drop has hopefully given some respite to the prospective home-buyers following weeks
of mortgage rates that have been rising. The double burden of the rising cost of borrowing coupled
with the rise in home prices has driven many Americans away from buying a new home and out of
the housing market.
Bloomberg News also reports that the rise in rates over six months has led to the slowdown of
the mortgage business. Loan originations during the fourth quarter were seen to plunge 13% from
one year earlier, which was driven by a drop in refinancing, as per Attom Data Solutions.
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