Mortgage Rates Fall to Record Low
Submitted by Frye Financial Center on July 1st, 2020
Nearly four months ago, in late February, the 10-year Treasury yield broke to its lowest level ever, undercutting the record lows from 2016 of 1.32%. Over the following two weeks, as fears surrounding the COVID-19 pandemic intensified, interest rates experienced an unprecedented collapse, with the yield on the 10-year Treasury note eventually trading as low as 0.31% on March 9 (Bloomberg). However, consumers who rushed to refinance loans in mid-March may have been surprised to find that mortgage rates, which typically track the path of longer-term Treasury rates, actually spiked significantly during that time.
So what happened? Read more.