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A stock market sell-off<\/a> had investors rushing to the relative safety of the bond market Monday morning, causing yields to drop<\/a> and mortgage rates to follow. <\/p>\n The average rate on the popular 30-year fixed mortgage fell to 5.99% on Monday, according to Mortgage News Daily, matching its lowest levels since 2022. Last year at this time the rate was 6.89%. <\/p>\n The drop in yields is due to a combination of factors, including new uncertainty over tariffs, cooling inflation and economic weakness shown in a lackluster gross domestic product report<\/a> Friday. <\/p>\n While rates briefly dipped into the 5% range for a few hours in January, they bounced back that same day. That is unlikely this time around, according to Matthew Graham, chief operating officer at Mortgage News Daily. <\/p>\n “This visit to the high 5’s looks more sustainable on paper,” Graham said. “As long as the broader bond market doesn’t sell-off in any major way, mortgage rates stand a better chance of remaining closer to present levels than they did last time.\u00a0And if the broader bond market improves further (i.e. 10yr yields dipping under 4.0%), mortgage rates would likely make incremental gains.”<\/p>\n The drop in rates will likely incite more refinancing, which has been surging over the last several weeks. Applications to refinance a home loan are about 130% higher than they were a year ago, according to the Mortgage Bankers Association. <\/p>\n<\/div>\n CNBC’s Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox.<\/p>\n Subscribe here to get access today<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\nGet Property Play directly to your inbox<\/h2>\n