U.S. long-term mortgage rates fell slightly this week, marking a
third straight week of declines as a continued inducement to purchasers
in the spring homebuying season.
Mortgage buyer Freddie Mac said Thursday the average rate on the
30-year, fixed-rate mortgage eased to 4.07% from 4.10% last week. By
contrast, a year ago the benchmark rate stood at 4.61%.
The average rate for 15-year, fixed-rate home loans declined this week to 3.53% from 3.57% last week.
The continuing U.S.-China trade war kicked into a fevered battle this
week as high-level talks between the two sides broke down Friday and
the Trump administration slapped new tariffs on $200 billion in Chinese
imports. Beijing retaliated on Monday with increased tariffs on $60
billion of U.S. products. That sent stock prices tumbling around the
globe; the Dow Jones Industrial Average plunged more than 600 points as
nervous investors shifted money from volatile stocks to the bond market.
Bond yields fall as prices rise. The yield on the 10-year Treasury
note, which influences mortgage rates, was 2.37% late Wednesday, down
sharply from 2.48% a week earlier. It rose to 2.41% Thursday morning.
With mortgage rates at historically low levels and positive economic
signs, Freddie Mac is expecting home sales to increase this summer.
“While signals from the financial markets are flashing caution signs,
the real economy remains on solid ground with steady job growth and
five-decade low unemployment rates,” Freddie Mac Chief Economist Sam
Khater said.
Freddie Mac surveys lenders across the country between Monday and Wednesday each week to compile its mortgage rate figures.
The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates.
The average fee on 30-year fixed-rate mortgages was unchanged this week at 0.5 point.
The average fee for the 15-year mortgage held at 0.4 point.
The average rate for five-year adjustable-rate mortgages rose to 3.66% from 3.63% last week. The fee remained at 0.4 point.
News Source: AP. Associated Press.