Oil’s plunge is pushing mortgage rates down

oil

By Nicoilk Timiraos | Wall Street Journal

Low oil prices may offer a hidden gift to consumers beyond the gas pump: They could also indirectly support lower mortgage rates.

Already, the average 30-year fixed-rate mortgage fell to 4.06% last week, the lowest level in 18 months, according to the Mortgage Bankers Association.

The plunge in oil prices has been spurred in part by concerns over a slowdown in global economic growth. Those fears have also boosted demand for government bonds, pushing down yields on longer-term Treasurys. Mortgage rates tend to closely track the 10-year Treasury.

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