Mortgage rates fell, aided by a slower pace of home sales. The average 30-year fixed rate mortgage dropped from 6.34 percent to 6.27 percent, according to Bankrate.com’s weekly national survey of large lenders. The 30-year fixed rate mortgages in this week’s survey had an average of 0.34 discount and origination points.
The average 15-year fixed mortgage rate retreated by a similar amount, from 5.99 percent to 5.93 percent, and the average jumbo 30-year fixed rate slumped from 6.53 percent to 6.48 percent. Adjustable rate mortgages declined as well, with the average 5/1 adjustable rate mortgage sliding from 6.08 percent to 6.02 percent, and the average one-year ARM decreasing to 5.65 percent from 5.73 percent last week.
Fixed mortgage rates declined for the second week in a row. Last week it happened after bond investors turned a blind eye toward inflation concerns, appeasing themselves that core inflation was not at troublesome levels. This week, the movement in mortgage rates was dominated by reports on slowing sales of both new and existing homes. Coupled with rising inventories of homes available for sale, the cooling housing market has kept a lid on bond yields and mortgage rates. Mortgage rates are closely related to yields on long-term government bonds.
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