For some perspective on all-important long-term interest rates, today's chart illustrates the 41-year trend of 30-year mortgage rates (thick blue line). Ongoing concerns over Europe in addition to a struggling global economy have encouraged investors, institutions and governments alike to move a portion of their investment dollars to the relative safety of the US. This has resulted in a significant decline in the yield of long-term debt instruments. In fact, 30-year mortgage rates have declined a fairly dramatic 310 basis points (i.e. 3.1%) since the peak of the credit bubble. This decline has brought 30-year mortgage rates down to a historically low level. The decline of 30-year mortgage rates has been significant enough to bring 30-year mortgage rates fairly near resistance of what is a 26-year downtrend channel.
