Thank you for taking the time to answer our queries. J. Juncture Dear J, A 30-year mortgage loan is typically outstanding for less than 10 years. A lot of factors can foreshorten the term of a mortgage loan. The homeowner can sell the house, refinance, or prepay the mortgage. Even if the loan remains outstanding over the 30-year term, the loan balance declines over time.
Bond markets tend to rally when the stock market is selling off.
In a declining stock market, investors would rather be earning interest on bonds than losing principal in stocks. Bond prices get bid up as investor demand for bonds increases. Higher bond prices means lower bond yields. An exception to this is when money flows into the U.S. Treasury markets as the result of a financial calamity or international incident. A promise from a mortgage broker isn't contractual.