Record-Low Mortgage Rates Seen Luring Back Japan Buyers

Mortgage rates in Japan have fallen to record lows, bolstering forecasts for a rebound in the residential market dented by April’s sales tax increase.

Bank of Japan stimulus will revive the 180 trillion yen ($1.5 trillion) mortgage market, Mizuho Securities Co. and JPMorgan Chase & Co. forecast. Japan Housing Finance Agency’s 35-year fixed rate loan set a record low of 1.47 percent this month. The benchmark 10-year bond yield reached an unprecedented 0.265 percent yesterday, 172 basis points less than the similar U.S. Treasury yield.