WASHINGTON, Nov 23 (Reuters): The average interest rate on the most popular US home loan fell last week to its lowest level in two months as Treasury market yields, which act as a benchmark for mortgage rates, continued to move lower on the back of cooling inflation and a softening economy.
The average contract rate on a 30-year fixed-rate mortgage declined by 20 basis points to 7.41 per cent for the week ended Nov. 17, data from the Mortgage Bankers Association (MBA) showed on Wednesday. It has declined 45 basis points over the past two weeks and is now at its lowest level since late September.
The yield on the 10-year Treasury note acts as a benchmark to set home loan costs. Home-purchasing borrowing costs had reached two-decade highs near 8 per cent in October.
A more timely mortgage tracker also saw the average rate on a 30-year fixed-rate mortgage fall to a two-month low. It fell to 7.29 per cent this week from 7.44 per cent the week before, according to a Freddie Mac survey released later on Wednesday.
The third consecutive weekly decline in both gauges comes amid signals that the Federal Reserve is unlikely to raise interest rates further. At the beginning of the month it kept its key overnight policy rate unchanged for a second straight meeting.
US mortgage interest rates fall
FE Team | Published: November 23, 2023 22:44:00
US mortgage interest rates fall
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