Mortgage interest rates began dipping again in recent weeks as bad news economic news has continued to surface. With the disappointing jobs numbers that came out recently and continuing economic struggles in Europe more and more investors have been fleeing to the relative safety of US bonds, which in turn has been lowering the yield on those bonds. As we have discussed in the past, when yields on the 10-year treasury note drop mortgage interest rates normally follow. The end result is that rates on conventional and government-backed mortgages are continuing to slowly drop this week.
Of course such trends are always temporary so contact us in the sidebar this week if you have considered a refinance. With the debates over the debt ceiling still raging in Washington DC there is no telling how long it will be before rates move higher again.