Mortgage Rates Return to 2014 Lows
Mortgage rates have been edging slowly downward this month, enough to bring the average rate to one of the year’s lowest levels. As of December 10th, the most prevalently-quoted 30-year fixed-rate mortgage was down to 3.875. Aside from some fleeting instances of particularly low rates that were seen during the turbulent morning of October 15th, these are the lowest rates we have seen for over half a year.
The strength in the current mortgage market can be attributed to weak activity in oil and the stock market. Though neither of these are directly connected to the housing market, there does tend to be a correlation between low stock activity and low mortgage rates. Generally speaking, when the stock market lags, the bond market picks up a bit. The bond market then sees some improvement, which raises prices and pushes rates lower.
