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Mortgage rates fell slightly during a dramatic week for bond markets that saw the 30-year Treasury yield hit its highest level since 2007, prompting the US Treasury to boost its buybacks of long-term debt.
The average 30-year fixed-rate mortgage was 6.65% this week through Wednesday, from 6.67% a week earlier, according to Freddie Mac data.
Long-term government bond yields briefly topped 5.3%, the highest level in 19 years, on Tuesday as Wall Street fretted about inflation and the US's growing fiscal deficit. On Wednesday, the Treasury said it was doubling the size of its long-term bond buying program to support prices and bring interest rates down. Yields fell sharply in response, before jumping again on Thursday.
Because most homeowners end up refinancing or selling before their 30-year term is up, mortgage rates more closely track the 10-year Treasury yield. The 10-year yield saw smaller swings this week than longer-dated bonds, but the factors that led to this week's market shock mean that mortgage rates aren't likely to fall, and may even rise somewhat, in the weeks ahead.
#year #term #long #wednesday
Mortgage rates fell slightly during a dramatic week for bond markets that saw the 30-year Treasury yield hit its highest level since 2007, prompting the US Treasury to boost its buybacks of long-term debt.
The average 30-year fixed-rate mortgage was 6.65% this week through Wednesday, from 6.67% a week earlier, according to Freddie Mac data.
Long-term government bond yields briefly topped 5.3%, the highest level in 19 years, on Tuesday as Wall Street fretted about inflation and the US's growing fiscal deficit. On Wednesday, the Treasury said it was doubling the size of its long-term bond buying program to support prices and bring interest rates down. Yields fell sharply in response, before jumping again on Thursday.
Because most homeowners end up refinancing or selling before their 30-year term is up, mortgage rates more closely track the 10-year Treasury yield. The 10-year yield saw smaller swings this week than longer-dated bonds, but the factors that led to this week's market shock mean that mortgage rates aren't likely to fall, and may even rise somewhat, in the weeks ahead.
#year #term #long #wednesday
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