Mortgage rates hit a low for 2011 in Freddie Mac’s Primary Mortgage Market Survey. 30 year mortgage rates hit a low of 4.61 percent with an average 0.7 point. Average mortgage interest rates on 30 year fixed mortgages was for the week ending May 19, 2011.
Current mortgage rates will remain low as long as all the uncertainly in the economies of the world continues. European markets were lower today because Greece’s debt was downgraded again. Lower stock prices are sending U.S. stock markets lower as well. 10 year bond yields are stable at 3.10% but are expected to go down as investors seek a safer haven for their money investing in U.S. Treasuries which will send bond yields and mortgage lending rates today lower tomorrow.
Lower bond yields will force mortgage rates today even lower. If the troubles in Europe continue and the Euro tanks against the Dollar you can expect 10 year bond yields in the U.S. to go below 3.00 percent this week.
If this all plays out and bond yields do break 3.00 percent you can expect fixed 30 year mortage rates to break below 4.50 percent and head as low as 4.25 percent. Jumbo mortgage rates could break below 5.00 percent as well on these troubles.