Mortgage rates forecast

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.

Mortgage-backed securities investors are looking to the specified pool market to counter higher prepayment speeds seen with loans purchased through the TBA window.

Mortgage rates tumbled to lows not seen since November 2016 as benchmark 10-year Treasury yields continue to decline due to investors' uncertainty over trade and the economy, according to Freddie Mac.

The U.S. government's trade war with China is pushing down yields on 10-year and 30-year Treasury notes.

Mortgage rates were unchanged from last week, but going forward, they are likely to decline following investors' reaction to the Federal Open Market Committee's July 31 short-term rate cut announcement.

Any growth in housing starts and home sales in the second half of 2019 will be muted by continuing inventory constraints and rising home prices, according to Freddie Mac.

From Jacksonville, Fla., to Seattle, here's a look at the 12 most favorable housing markets for homebuyer purchasing power, based on a combination of local wages, lower property values and mortgage rates.

When a recession occurs, it won't be because of the housing market, according to Zillow. Unlike 2008, 2020 forecasts a gradual slowdown in housing rather than an abrupt crash.

Bond market investors acted cautiously in the wake of next week's Federal Open Market Committee meeting and that likely resulted in mortgage rates moving lower this past week.

After three weeks of holding fairly steady, average mortgage rates ticked up this week, ironically due to investor optimism that the Federal Open Market Committee will cut short-term rates, according to Freddie Mac.