Mortgage interest rates drop back to under 4%

The turmoil in financial markets during February led to a flight to safe assets which pushed the 10-year Treasury yield down to 1.78%, its lowest level since early 2013, and also led to a drop in mortgage interest rates. Improved housing affordability will help to support housing demand. But a lack of inventory continues to restrict housing market activity, with the result that demand is again feeding through into higher house prices.