By Alex Veiga, business writer AP
The average rate on a mortgage of 30 years in the United States has decreased for the third consecutive week, another positive decision for potential buyers during what is traditionally the season responsible for the housing market.
The rate fell to 6.62% compared to 6.64% last week, the mortgage buyer announced on Thursday. A year ago, the rate was on average 6.88%.
The average rate has mainly had a lower trend since it reached just over 7% in mid-January. When mortgage rates decrease, they strengthen the purchasing power of home buyers.
Borrowing fees on fixed rate mortgages of 15 years, popular with owners, refinancing their home loans, were unchanged from last week. The average rate remained at 5.82%, but is down 6.16% a year ago, said Freddie Mac.
Mortgage rates are influenced by several factors, including the global demand for American Treasurys, interest rate decisions of the Federal Reserve and the expectations of bond market investors in future inflation.
The average rate on a mortgage of 30 years is a loose movements in the yield of the treasury at 10 years, which lenders use as a guide for the pricing of real estate loans.
The yield, which mainly decreased this year after climbing to around 4.8% in mid-January, was recently volatile while bond investors reacted to the Trump administration’s decision to degenerate American rates on goods imported from countries around the world.
After slipping at only 4.01% at the end of last week, the 5 -year -old treasure yield climbed almost 4.5% on Wednesday morning. It was 4.34% at noon, trader Thursday after the White House decision to temporarily suspend the new prices on most nations, even while increasing taxes on imports on China.
Originally published:
California Daily Newspapers
