Treasury bond yields ended last week at another all-time low as economic and political turmoil abroad and sinking stock prices at home are pushing long term interest rates down.

The 30 year fixed rate mortgage average fell 0.04% last week to 6.76%. The average 15 year fixed rate dropped 0.03% to 6.47% from the previous Friday. One year ARM rates were up 0.01% to 5.61%.

Last week's nearly 500 point decline in the Dow Jones Industrial Average fueled a "flight to quality" which ignited a rally in prices on long term Treasury bonds. The yield on the benchmark 30 year issue fell to 5.33%, a drop of 10 basis points (0.10%) from the previous week. This marks the lowest yield ever on 30 year Treasuries. Lower long-term bond yields normally lead to lower mortgage rates.

Published: August 31, 1998

Use of this article without permission is a violation of federal copyright laws.