Would you want to be buy a home in this economy?
Knowing that a dramatic stock market crash could happen again any day now?
Economic uncertainty drives a flight to safety among investors, bidding up U.S. Treasury bonds and driving down their yields, and with them, mortgage interest rates.
Lower rates bid up refinancing, but to levels way below what they were a year ago.
More: “Unprecedented volatility in the stock market last week amid additional signs that the economy has slowed led to further drops in mortgage rates, with the 15-year rate reaching a new low for the MBA survey,” said Mike Fratantoni, MBA’s vice president of research and economics.
“Purchase application activity fell sharply over the previous week, likely the result of potential homebuyers hesitant to purchase in this highly volatile and uncertain environment.”