Mortgage rates slide as echoes of 2006 haunt the housing market

(MARKET WATCH) Rates for home loans declined as bonds caught a bid, offering some breathing room for stretched home buyeThe 30-year fixed-rate mortgage averaged 4.83% in the Nov.1 week, down 3 basis points, mortgage finance provider Freddie Mac said Thursday. The 15-year fixed-rate mortgage averaged 4.23%, down from 4.29%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.04%, a 10-basis point drop.

Bond yields tumbled late last week as investors fled to the perceived safety of fixed-income assets in the wake of a sharp stock sell-off. As prices rise, bond yields decline.

Meanwhile, momentum in the housing market has waned enough that it’s starting to worry many observers. Home prices rose at the slowest pace in nearly two years in August, according to the S&P CoreLogic Case-Shiller report released Tuesday.

 

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