As stocks sank in trading today, Treasury yields were also lower — increasing the likelihood of lower mortgage rates and higher refinance activity.
The yield on the 10-year Treasury note was 2.95 percent today, according to market data from the Wall Street Journal. The yield fell as concerns grew over European countries.
Treasury Department data indicate that the 10-year yield rose as high as 3.22 percent on July 1 — pushing the average 30-year fixed-rate mortgage to 4.60 percent in Freddie Mac’s Primary Mortgage Market Survey for the week ended July 7.
The recent decline in Treasury yields will likely pull the 30-year mortgage down to around 4.40 percent.
The lower rates are likely to stimulate new refinance inquiries.
The share of refinances had fallen to 48 percent in the Mortgage Market Index report for the week ended July 1 from as high as 54 percent during the week ended June 10 — when the 30-year rate was 4.49 percent.