Industry NewsMortgage

Mortgage rates head deeper into record territory

Thirst for bonds shows growing fear that recovery is in jeopardy

Mortgage rates headed deeper into record territory this week as rumblings from Europe continue to make the guaranteed bonds that fund most mortgage loans look like a safe bet to investors.Fears that the European debt crisis will derail the global economic recovery may also be weighing on would-be homebuyers, as demand for purchase loans slipped last week, with applications back down to levels seen a year ago.Economists at Fannie Mae said in a monthly outlook report released today that they continue to see "a number of threats that could dampen growth" this year, including "substantial risk that investors will lose confidence in the ability of Europe to solve its problems over the intermediate term."Recent elections in Greece and France indicated "waning public support for austerity, igniting fears that the sovereign debt crisis could develop into a more significant credit crisis that could spill over to countries around the globe," Fannie Mae economi...