June 11, 2017

IT'S A DEFLATIONARY EPOCH:

Fixed Mortgage Rates Are Stuck in Long Slide (Kathy Orton, 6/11/17, The Washington Post)

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average sank to 3.89 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.94 percent the previous week and 3.6 percent a year ago. The 30-year fixed rate has fallen 16 basis points in the past month. (A basis point is 0.01 percentage point.)

The 15-year fixed-rate average dropped to 3.16 percent with an average 0.5 point. It was 3.19 percent the previous week and 2.87 percent a year ago. The five-year adjustable rate average remained the same, at 3.11 percent. It was 2.82 percent a year ago.

Mortgage rates tend to follow the path of long-term bond yields. As investors buy up bonds, sending prices higher, that drives yields down.

The yield on the 10-year Treasury plunged to a seven-month low last week, slumping to 2.14 percent Tuesday. In less than three months, it has dropped 46 basis points from its peak this year at 2.6 percent.


Ironically, while we're saving ourselves from Donald's economic ignorance, the Fed could deep-six the economy anyway.


Posted by at June 11, 2017 9:04 AM

  

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