The yield on the benchmark 10-year Treasury note fell to a new yearly low Wednesday morning — 2.42% — after yet another disappointing report on home sales.
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At press time, the yield had bounced back slightly to 2.44%. It's unclear whether mortgage rates will fall in tandem but some lenders continue to offer 30-year fixed-rate mortgages at under 4%. Over the past 52 weeks the yield has ranged as high as 4.01%.
Quicken Home Loans, Livonia, Mich., the second largest nondepository mortgage banker in the U.S., was advertising a 3.99% 30-year FRM Wednesday morning and a 2.99% 5-year ARM.
Refinancing applications currently account for about 80% of all new loans being considered by lenders.
