Mortgage rates continue tumble
Posted May 8, 2012
A quiet week on the domestic economic housing front so far, as the focus has now shifted overseas for the first two days of the week.
Greek unrest has been a mortgage rate benefactor, as the uncertainty there has helped deliver lower treasury yields and lower mortgage rates this week. The initial rally with the treasury decline began last Friday when we had weaker than expected job creation numbers, and since then the Treasury train hasn’t stopped its momentum, driving the 10-year to a yield as low as 1.81 earlier Tuesday, a figure that we haven’t seen in weeks.
The timing of this couldn’t be better for the Triangle spring housing market. Lower rates mean greater affordability, and with the supply and demand levels starting to even out, the fundamentals for a healing market continue to grow here in the Triangle.
As long as there is great uncertainty, with not only Greece but other parts of the EU, we’ll see funds flow into treasuries, and as this “flight to quality” trend continues, it puts mortgage rates under some much welcome downward pressure.
Jobless claims, Producer Price Index and consumer sentiment are all slated for release later this week.