Last week the 30-year-fixed-rate mortgage fell below 4%, displaying a 16 month low for the product. Furthermore, the 15-year-fixed-rate mortgage also registered a fall as it averaged 3.46% from the previous 3.51%.
Interest rates have been following the general market cues similar to the bond market. Important factors influencing the slowdown are general slowing trends globally and speculations regarding the US-China trade war. With dilapidated global growth predictions for the future, investors are finding fixed income assets like bonds more secure. Mortgage interest rates are linked to the ten year US Treasury note.
However contrary to the drop, Americans are not taking much advantage of this downfall. This is evident by the decrease in the number of applications for both mortgages and refinances. The Mortgage Bankers Association released this data