The Dow Jones dropped 420 points today. Investors are pulling their money out of the stock market and into U.S. Treasury bonds. As a result, interest rates are plunging. There’s not much demand for capital to invest as America’s economy teeters on the precipice of another recession.
The WSJ says: Mortgage rates in the U.S. continued their decline over the past week, hitting new lows amid concerns about the economic outlook in the U.S. and fallout from Europe’s sovereign-debt problems, according to Freddie Mac’s weekly survey of mortgage rates.
Refinancings averaged about 70% of all mortgage activity in the first half of the year, as homeowners took advantage of low rates, according to Freddie Mac.
The 30-year fixed-rate mortgage averaged 4.15% for the week ended Thursday, down from 4.32% the previous week and last year’s rate of 4.42%. Rates on 15-year fixed-rate mortgages averaged 3.36%, down from last week’s 3.5%, and last year’s 3.9%.