by Bill McBride on 6/24/2010 10:54:00 AM
Thursday, June 24, 2010
From Reuters: Mortgage Rates Drop to Lowest Level on Record
Interest rates on U.S. 30-year fixed-rate mortgages, the most widely used loan, averaged 4.69 percent for the week ended June 24, the lowest since Freddie Mac started the survey in April 1971.Click on graph for larger image in new window.
This graph shows the 30 year fixed rate mortgage interest rate, and the Ten year Treasury yield since 2002. The 30 year mortgage rate is now at a series low (started in 1971), although the spread between the mortgage rate and the treasury yield has widened about 30 bps recently.
The decline in mortgage rates is related to the weak economy and falling treasury yields.
Posted by Bill McBride on 6/24/2010 10:54:00 AM