Mortgage rate relief?
Sep 16th, 2008 by bill
Lehman Brothers Holdings Inc.’s bankruptcy filing on Sept. 15 could mean some good news for the mortgage market. Lehman’s moved led to a shift by investors to the U.S. Treasury market, which in turn pushed down yields that affect home mortgage rates. By the morning of the 15th, the rate for a 30-year fixed mortgage had dropped about a 0.125 percentage point to nearly 6 percent, according to figures from Bankrate Inc.
“The Treasury’s whole goal is to get mortgage rates down,” Todd Abraham, co-head of mortgage and government debt investing at Federated Investors Inc. in Pittsburgh, told Reuters news service.
