Mortgage Rates

The drop in interest rates is spurring homeowners to refinance.  According to the Seattle Times:

"Homeowners race to refinance as mortgage rates plunge"

The article includes the following chart on local mortgage rates:

 

Mortgage rates are closely tied to the 10 yr interest rate which are shown below.

Rates have been falling since February, and, have recently picked up speed in a flight to safety move.  This week rates have fallen below the 2.5 year base that had been building and are challenging the panic lows set in 2008.  Looks like they have additional room to the downside.  It would take a move back into the base (above 2.5%) before a bottom in rates could be called.