Rates for home loans lurched to a fresh 2017 low, trailing bond yields in the wake of new geopolitical fears and lingering monetary stimulus, mortgage provider Freddie Mac said Thursday.
The 30-year fixed-rate mortgage averaged 3.78% in the week ended Sept. 7 week, down four basis points from the previous week, and the lowest since just before the November presidential election.
The benchmark mortgage rate is still higher than one year ago, when global markets were buffeted by the Brexit decision.
The 15-year fixed-rate mortgage averaged 3.08%, also down four basis points. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.15%, up one basis point.
Those rates don’t include fees associated with obtaining mortgage loans.
Read: Why aren’t there enough houses to buy?
Demand for safe-haven assets like government bonds surged after North Korea’s weekend war games. As bond prices rise, yields fall. The benchmark 10-year U.S. Treasury TMUBMUSD10Y, -2.68% hit a 10-month low earlier this week, before ticking up slightly after a deal was struck to keep funding the government, then reversing course on Thursday as the European Central Bank said it would keep its stimulus program humming.