Fixed mortgage rates fell to their lowest levels since November, according to a NerdWallet survey of daily mortgage rates published by national lenders Tuesday morning. The 5/1 ARM slipped to a rate last seen in June.
Bond yields fell overnight immediately after North Korea launched a missile over Japan. Investors responded to the latest threat from North Korea by buying bonds, which are seen as a safe place to stash money. The bond-buying spree means that there is more money available for governments, businesses and consumers to borrow, which caused bond yields to fall. Mortgage rates followed.
The yield on the 10-year Treasury stood at 2.16% at the end of business Monday. Overnight, the yield fell to as low as 2.09%, and by this morning, the 10-year Treasury yield rebounded a bit to 2.12%. While that doesn’t seem like much of a change, it was enough to push fixed mortgage rates down to their lowest level since the week of the 2016 presidential election.
MORTGAGE RATES TODAY, Tuesday, AUG. 29:
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.
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