CNBC.com | The industry has been concerned about higher mortgage rates in 2016, but so far, rates have been low. And they may even head into record-low territory soon, according to analysts.
About two months ago, the Federal Reserve raised its funds rate for the first time in years. Since then, however, the 30-year fixed-rate mortgage has been dropping, with some analysts believing that rates could fall into the 2 percent range.
What’s behind the drop in rates? Investors are flooding into the U.S. bond market, which is leading to the drop in mortgage rates, CNBC reports. (Mortgage rates follow loosely the 10-year Treasury bond yields.)
The lower mortgage rates help home buyers lessen their monthly payments and also qualify for larger loans – which could help provide a boost to the spring home-buying market.
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