Mortgage rates for 30-year fixed loans dropped to their lowest level since mid-June, while 15-year fixed loans plunged to a two-month low and 5/1 ARMs fell two basis points, according to a NerdWallet survey of daily mortgage rates published by national lenders Friday morning.
Stock prices fell broadly yesterday in response to political uncertainty after the president disbanded two business councils that had included prominent corporate CEOs. The Dow Jones Industrial Average lost 1.24% and the S&P 500 fell 1.54%, the largest daily declines in three months.
The trend continued early today, as both indexes were down slightly. As investors bailed out of stocks, they bought bonds, including the bonds that back mortgages. That caused bond yields to drop, and mortgage rates followed.
Except for a dip in mid-June, this is the lowest the 30-year fixed rate has been since shortly after the presidential election. On Nov. 9, 2016, the day after the election, the 30-year fixed stood at 3.79%. The day after, it skyrocketed to 3.99%. It hadn’t fallen back to that level until this week’s political turmoil following the president’s remarks about last weekend’s events in Charlottesville, Virginia.
MORTGAGE RATES TODAY, friday, AUG. 18:
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.
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The article Mortgage Rates Friday, Aug. 18: Stocks Drop, Drive Rates Lower originally appeared on NerdWallet.
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