Mortgage rates fall below 4%

There’s a silver lining for home buyers in the clouds hanging over the stock market.

Interest rates on a 30-year, fixed-rate mortgage fell to 3.97% this week, according to Freddie Mac. That’s down from 4.12% last week and the lowest level since June 20, 2013.

The drop in mortgage rates comes as investors have flocked to the safety of U.S. Treasury bonds. The yield on the benchmark 10-year Treasury note has tumbled as low as 1.86% this week.

Mortgage rates usually move lock step with the yield on the 10-year note.

Investors have rushed to bonds because they have been spooked by a combination of economic weakness in Europe, concerns about Ebola and geopolitical turmoil around the world.

“Rates are at their lowest levels since June 2013 amidst continued investor skepticism regarding the precarious economic situation in Europe,” said Frank Nothaft, chief economist at Freddie Mac.

Mortgage rates have gone lower despite expectations that they would start rising as the Federal Reserve starts pulling back its economic stimulus.

The Fed has cut back its program of buying bonds and mortgage-backed securities, which everyone expected would put upward pressure on interest rates.

The latest international turmoil and the stock market rout has instead pushed rates the other way.

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About thenoelteam

As a Broker with RE/MAX Alliance, I work energetically for my clients whether they are a buyer or seller. I help you achieve your goal of owning a home or getting the best price for your home in the shortest time possible. After graduating from UCLA with a degree in communications and finance, I was licensed in 1977 and since then I have sold over 3600 properties amounting to over $1 billion in sales. I currently rank in the top 10 in home sales for Colorado. I offer the same quality of service and superior communication to all clients, ranging from starter homes to multi-million dollar estates, commercial and income properties, relocations and foreclosures My goal is to provide you with the best representation possible whether you are buying or selling. Over the years, one of the things that I've discovered is that there is a difference in the way individual Realtors do business. For me, I have always felt that honesty and personal integrity are the foundations upon which a successful business and career are built and sustained. I have an extensive background and knowledge base in real estate, including financing, which has enabled me to provide outstanding, quality advice and service not found with many agents today. My commitment to communication creates a positive relationship between my client and myself that results in a successful property sale or purchase. My passion for real estate, commitment to my clients and personal integrity has helped me to achieve success placing me in the top 1% of all brokers in nationwide. In my career, I have earned a number of awards and received considerable recognition for my success but the most significant recognition comes from the fact that over 75% of my business comes from past clients. My success is a true measure of my client satisfaction.
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