Mortgage interest rates dropped with the bond market amid growing global economic concerns, prompting investors to target safer assets.
Government-backed mortgage lender Freddie Mac says that the 30-year fixed-rate mortgage average rate was 4.41 percent the week of February 7, down from 4.46 percent the week before, and marks the only period this year showing growth, MarketWatch reports.
The 15-year adjustable-rate mortgage averaged 3.84 percent, and the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.91 percent, also down 5 basis points. Those rates don’t include fees associated with obtaining mortgage loans. Mortgage rates track the 10-year U.S. Treasury note. Bonds have become more attractive over the past few weeks as global growth concerns have persisted. That’s good for borrowers: bond yields decline as their prices rise.