The recent panic selling in major tech stocks, primarily driven by the emergence of China's AI newcomer DeepSeek, is expected to offer temporary relief for mortgage rates. The Nasdaq composite experienced a notable decline of almost 3%, with Nvidia's shares plunging 17%, resulting in significant market cap loss. This sell-off led to a rise in bond prices and a decrease in yields, which typically influence mortgage rates. As rates on 30-year fixed home loans hover close to 7%, this dip could slightly lower them, yet any sustained relief will hinge on larger economic stability.
DeepSeek's launch of a competitive and cost-effective AI product has prompted a stock sell-off in major tech companies, impacting mortgage rates.
The Nasdaq composite dropped nearly 3%, signaling a challenging market as AI chipmaker Nvidia's stock saw a substantial decline.
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