Mortgage rates could fall to new lows as the Dow Jones Industrial Average briefly traded below the 10,000 mark.
During early trading today, the Dow fell nearly 200 points, briefly trading below 10,000 — a psychological benchmark for the markets.
At the same time, the yield on the 10-year Treasury fell to 2.477 percent, according to data published by WSJ.com.
Nervous stock market investors often move money to bond markets when stocks tumble — pushing Treasury demand higher and lowering the yield required by investors.
The 10-year yielded 2.568 percent during trading last Thursday, while Freddie Mac reported that the average 30-year fixed-rate mortgage was 4.42.
Today’s Treasury movement suggests that the 30-year average has moved to somewhere around 4.33 percent — lower than any week tracked by Freddie since it started its survey in 1971.
