Mortgage Bonds Boom Drives Rates Down

July 8, 2010

Source: The Wall Street Journal, Mark Gongloff

Residential mortgage bonds backed by the U.S. government have become a safe haven for investors again, helping to drive mortgage rates to record lows.

The average interest on 30-year fixed loans fell this week to 4.58 percent, down from 4.69 percent a week ago, reports Freddie Mac.

Relatively few home owners are refinancing at the bargain rates, however, in large part because many eligible borrowers did so when rates were almost as low last year.

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