Last week's banking sector turmoil had at least one silver lining for U.S. home buyers: lower mortgage interest rates.
to shore up the wider banking system drove a mad dash by investors to the safety of government bonds, the Mortgage Bankers Association said on Wednesday.
The lower rates drove a jump in loan application volumes, with applications for both new purchases and refinancing of existing loans hitting a six-week high, MBA said. In fact, the drop in residential borrowing costs of 0.31 percentage point in the last two weeks was far more modest than might have been expected given that the yield on the 10-year Treasury note , which acts as a benchmark for mortgage rates, tumbled more than half a percentage point over the same window. It was the largest drop - outside of the panic in the early days of the COVID-19 pandemic - since the financial crisis in 2008.
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