Barely a week ago it looked like mortgage rates were finally breaking higher, but in a sudden reversal, they just set a new record low.
The average rate on the popular 30-year fixed mortgage hit 2.97% Thursday, according to Mortgage News Daily, as the stock market sold off, and investors rushed to the relative safety of the bond market. Mortgage rates loosely follow the yield on the 10-year U.S. Treasury.
The market selloff is being fueled by new concerns of a second wave of the coronavirus, which already decimated the economy in April and May. Rates have been hovering above 3% for much of the past month and only broke higher last week, following a surprisingly more optimistic May employment report. That, on top of cities across the country reopening, fueled more selling in the bond market.
Low rates have fueled a sharp and fast recovery in the housing market, especially for homebuilders. Mortgage applications to purchase a home were up 13% annually last week, according to the Mortgage Bankers Associations.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. Stocks Tumble as Investors Grow JitteryThe Dow industrials dropped more than 800 points shortly after the opening bell as fresh concerns about a new wave of coronavirus infections sent investors out of risky assets.
Read more »
Nation's mayors form new police reform, racial justice working groupChicago Mayor Lori Lightfoot discusses a new police reform and racial justice working group, the city's most violent day in 60 years and her concerns over a potential rise in coronavirus cases.
Read more »
U.S. Coronavirus Cases Top Two MillionThe U.S. coronavirus death toll passed 112,000 and reported cases topped two million, while India reported single-day records in the number of new infections and deaths.
Read more »
As markets recover, here's how to make the most of your money in AsiaAs markets recover from the coronavirus lows, experts share where to find investing opportunities in Asia.
Read more »
Coachella Has Reportedly Been CanceledCoachella and Stagecoach music festivals have reportedly been postponed over concerns about coronavirus.
Read more »
WHO's chief scientist says there's a 'very real risk' of a second wave of coronavirus as economies reopenStringent public health measures have helped stem the transmission of the coronavirus, but there's 'every chance' of a resurgence as economies reopen, says the WHO's chief scientist.
Read more »