Strength in the US dollar on Thursday sent bond yields lower. Mortgage rates dropped as well.

The 30 and 15 year fixed rate mortgage averages declined to 6.83% and 6.52% respectively. The 1 year ARM rate fell to 5.67%. In the Bank Rate Monitor's Wednesday survey of large institutions, fixed rate mortgages recorded the largest one week drop since late May.

The yield on the 30 year US Treasury bond dropped to 5.60% as the dollar posted gains against the yen. The downward pressure on the yen continues as Japan hesitates enacting an income tax reduction widely viewed as necessary to turn around its floundering economy.

Stocks were mixed on Thursday with the Dow Jones Industrial Average giving up almost all of its gains from the day before, falling over 85 points. The S&P 500 was also down, but the NASDAQ average climbed 4.43 points to another record close. Internet stocks were battered again despite Yahoo's positive earnings announcement.

Published: July 10, 1998

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