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 on Wednesday and stated that potential American homeowners may be feeling apprehensive due to the ongoing trade dispute. They might have a fear that any further deterioration in prevailing conditions or delay in a resolution may further impact the housing market and economy in general adversely.

Speculators are hopeful for the spring selling season. As many analysts think that the unsteady mortgage market during the second half of 2018 was a one-time thing and more investors will find it lucrative with steady market conditions. However, guessing from the current headlines, this sounds a little too optimistic to be true.