Mortgage Rates Hit Fresh Record Low, But Don't Get Excited


Just when you thought mortgage rates couldn’t get any lower, they did.

According to Freddie Mac, the average 30-year fixed rate mortgage fell to 4.01%, down from last week’s reading of 4.09%.  This is an all-time low.

This could have something to do with falling 30-year Treasury Bond yields, a benchmark for the 30-year mortgage.  The 30-year Treasury has probably been falling because of Operation Twist, or rather the anticipation of Operation Twist.

With home prices going nowhere, falling mortgage rates means it just got cheaper to buy a house.

So, does this mean buyers will rush back to the housing market?  Not necessarily.

Experts including Robert Shiller don’t think lower mortgage rates will get people back into the housing market without improving confidence. Confidence in jobs. Confidence in the economy.

According to the latest reading, consumer confidence was still pretty deflated.

For some historical context:

Historical 30 Year Mortgage Rate

Photo: Freddie Mac, St. Louis Fed

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