Mortgage rates

The global rally in bonds on Thursday drove the yield on the benchmark 10-year Treasury below 1.5% for the first time since August 2016.

Lower rates will likely sustain higher levels of origination through at least the third quarter, but supply constraints and economic weakness could limit the purchase market's response in the long term.

July's low mortgage rate environment encouraged new homebuyers to overcome their fears about the direction of the economy that kept them out of the market in June, according to the Mortgage Bankers Association.

Sentiment among homebuilders rose in August to match its 2019 high as mortgage rates tumbled, though a weaker outlook signaled concern that any gains will be temporary as investors fret about an economic downturn.

Mortgage rates remained unchanged this past week even with all of the upheaval in the bond markets that pushed long-term Treasury yields down, according to Freddie Mac.

Mortgage activity fell at the start of the year, but lower mortgage rates are boosting refinance volume, and Generation Z is starting to creep into the housing market, according to TransUnion.

The U.S. government bond market sounded alarms Wednesday as investors fleeing riskier assets drove the 30-year bond's yield to a record low and the 10-year yield fell below the two-year for the first time since 2007.

While last week's large drop in interest rates sparked a surge in refinance activity, purchase mortgage application volume increased for the first time in over a month, according to the Mortgage Bankers Association.

There's a silver lining to the recent economic turbulence: Mortgage rates have tumbled in recent weeks, triggering a rush to refinance and a race to the closing table for many Twin Citians.

With bidding wars subsiding, new-home sales prices dropped, causing the largest decline in new construction since 2013, according to Redfin.