The daily average rate for the fixed 30-year mortgage slipped to 3.79% last week, however that figure was not as low as expected given that bond yields have fallen markedly during the past three years.
The connection between Treasury yields and mortgage rates – two metrics that typically move in unison – has frayed in recent weeks, in part due to increased refinancing activity weakening investor demand for mortgages, resulting in higher-than-expected rates. Treasury yields continued to fluctuate over the past week on developments surrounding U.S.-China trade tensions, ending the period near all-time lows.
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