If you’re sad summer’s over, here is a reason to celebrate — the 30-year fixed mortgage rate dropped 4 basis points today, hitting a year-to-date low of 3.78%.
And if you think that’s low, check out how low Clara’s rate goes.
Source: Freddie Mac
Why so low?
Today, unemployment claims in the U.S. jumped more than expected because of Hurricane Harvey. This is seen as an additional headwind to the Federal Reserve’s policy normalization plans. Stocks have been mixed, and Treasury is rallying as we head into the middle of the trading session.
Fixed income market opened on a weak note as investors were waiting for European Central Bank president Draghi to announce a cutback in ECB’s quantitative easing. However, this has been delayed until the next meeting. With that, bond prices are higher, and we could see a pricing improvement later if this continues.