Rates for home loans slid to the lowest in four weeks, breaking with a surge in Treasury yields and pushing the benchmark further below the key 4% threshold, Freddie Mac said Thursday.
The 30-year fixed-rate mortgage averaged 3.92% in the July 27 week, down from 3.96%. The 15-year fixed-rate mortgage averaged 3.20%, down three basis points during the week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.18%, down from 3.21%.
Those rates don’t include fees associated with obtaining mortgage loans.
The 10-year Treasury note yield
, which mortgage rates track, shot up ahead of a Federal Reserve meeting midweek, at which the Fed was expected to provide more guidance about its plans to whittle down a massive holdings of bonds.
Treasurys declined again after the Fed’s post-meeting statement sounded a note of caution about inflation. As Freddie’s chief economist noted in a release, mortgage rates throughout the coming week will likely be influenced by evolving market reaction to the Fed, which signalled it was still likely to begin trimming the balance sheet “relatively soon.”