CNBC real estate correspondent Diana Olick checks into some of the unnerving reasons mortgage interest rates keep finding new lows despite Fed moves late in 2015 to start lifting the prime lending rate on a measured basis as the economy continues to find solid footing.
In fact, however, a growing contagion of fear around stocks and worldwide currencies has global investors flooding into the bond market seeking safe haven, and this in turn, is pressing down on mortgage lending rates. Olick writes:
Lower mortgage rates certainly offer homebuyers lower monthly payments and at the same time help them to qualify for larger loans, so they can buy more expensive homes. The latter is particularly pertinent this spring, as home prices are rising due to record low supply of homes for sale. On the flip side, a weaker economy, stock market losses and general unease about the fate of employment and wage growth all hurt housing.