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UPDATE 1-U.S. 30-year mortgage rates fall to lowest in six weeks -Freddie
January 12, 2017 / 3:49 PM / 10 months ago

UPDATE 1-U.S. 30-year mortgage rates fall to lowest in six weeks -Freddie

(Adds details, graphic, table)
    Jan 12 (Reuters) - Interest rates on U.S. 30-year fixed-rate
mortgages fell to their lowest levels in six weeks, in step with
the decline in U.S. government debt yields, mortgage finance
agency Freddie Mac said on Thursday.
    The borrowing cost on 30-year mortgages, the most widely
held type of U.S. home loan, averaged 4.12 percent in the week
ended Jan. 12, it said. Last week, 30-year mortgage rates
averaged 4.20 percent. Two weeks earlier, the rate was 4.32
percent, the highest since 4.33 percent in the week of April 24,
2014.
    The pullback in mortgage rates revived loan applications,
with those to buy a home hitting the highest weekly level in six
months, Mortgage Bankers Association data showed on Wednesday.
 
    Longer-dated Treasury yields have retreated from their
highest levels in over two years since mid-December as investor
appetite for bonds improved following the global bond market
rout due on bets of faster inflation under a Trump
administration.
    The benchmark 10-year Treasury yield fell to
2.307 percent on Thursday, which was its lowest since late
November. It was about 0.45 percentage point higher than the
level prior to Donald Trump's election win in November,
according to Reuters data.
    Below is a summary of Freddie Mac's average mortgage rates
in the week ended Jan. 12:
 Loan type      Latest week (pct)  Week ago (pct)  Year ago (pct)
 30-year fixed  4.12               4.20            3.92
 15-year fixed  3.37               3.44            3.19
 5-year ARM     3.23               3.33            3.01
    
     
    
     

    
 (Reporting by Richard Leong; Editing by Chizu Nomiyama and Dan
Grebler)

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