Mortgage rates in the US fell this week, as many investors jittery about the crisis in Japan rushed to purchase US Treasury bonds, according to Freddie Mac.
“With the crisis in Japan, investors rushed to buy the security of US Treasury bonds, which lowered its yields and other interest rates as well,” said Frank Nothaft, Chief Economist at Freddie Mac. “This allowed fixed mortgage rates to drift lower this week.”
Mortgage rates generally track US yields, which move opposite to Treasury prices. Mortgage rates rose early this year, reaching the highest level since April 2010, after having dropped for the rest of last year, as Treasury bonds fell amid economic uncertainty.
Meanwhile, the average rates for 30-year fixed mortgages stood at 4.76 percent in the week ended Thursday, down from last week’s 4.88 percent. 15-year fixed-rate mortgages also dropped to 3.97 percent from 4.15 percent last week.