Mortgage rates drop to 2-month low—an unexpected holiday gift to housing

Mortgage rates are falling sharply, as investors head to the relative safe-haven of the bond market. Mortgage rates follow loosely the yield on the 10-year U.S. Treasury. The average rate on the popular 30-year fixed has fallen 21 basis points in the past week, from 4.94 percent to 4.73 percent today, according to Mortgage News Daily. The drop comes after the 30-year fixed hit a recent 8-year high of 5.05 percent at the start of November.