Amidst worldwide economic turmoil, investors are fleeing to the safety of U.S. Treasury bonds, thus driving up the prices of these bonds and cutting their yields.
Swiss bonds now have negative yields.
Experts expect mortgage interest rates to drop further in the following weeks.
Report: According to the report, the average rates for 30-year FRMs hit a new low of 4.32 percent this week, down from 4.39 percent last week and 4.44 percent last year. The average mortgage rates for 15-year fixed-rate mortgage, 5-year adjustable rate mortgages, and 1-year ARMs all reached all-time record low. According to the report, 15-year FRMs averaged 3.50 percent, down from 3.54 percent a week ago and 3.92 percent at this time one year ago. Average rates for 5-year ARMs slipped from 3.18 percent a week ago to 3.13 percent this week, while 1-year ARMs averaged 2.89 percent, down from 3.02 percent the previous week. Analysts state that the step taken by Fed will help to lower the US mortgage rates to spur the housing market, which is yet to recover from the subprime mortgage mess and overbuilding from the housing boom. They add that it help the country’s economy to add more money into homeowners’ pockets by enabling them to refinance into lower-rate mortgages.