Mortgage-Bond Yields Tumble, Signaling Loan Rates Nearing Record
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Yields on Fannie Mae and Freddie Mac mortgage securities that guide U.S. home-loan rates fell to the lowest in almost nine months, signaling borrowing costs to purchase and refinance houses may reach new lows.
Fannie Mae’s current-coupon 30-year fixed-rate bonds dropped 0.18 percentage point to 3.45 percent as of 3:05 p.m. in New York, according to data compiled by Bloomberg. Yields tumbled to the lowest level since Nov. 10, generally tracking drops in Treasuries, as concern the economy is slowing and Europe’s fiscal crisis will spread drove investors to U.S. debt.