Lower Mortgage Rates Are Good for Home Buyers. The Reasons for Lower Rates Aren’t.

Core Insights - Mortgage rates are expected to decline as long-term bond yields fall, which is typically positive for home buyers [1][2] - The decline in Treasury yields is attributed to weaker-than-expected jobs data and the ongoing U.S. government shutdown, which may deter potential buyers [3] Group 1: Mortgage Rates - The 10-year Treasury yield decreased by 0.043 percentage points to 4.106%, the lowest level since mid-September [2] - The 30-year fixed mortgage rate was reported at 6.37% in a recent survey [2] Group 2: Economic Indicators - The drop in Treasury yields followed the release of disappointing ADP jobs data, indicating potential economic weakness [3] - The government shutdown is contributing to uncertainty in the housing market, which may keep buyers from making purchases [3]