Rates for home loans fell to a fresh 2017 low this week, but that could prove short-lived as a recent bond-market selloff could help boost mortgage rates next week, mortgage provider Freddie Mac said Thursday.
The 30-year fixed-rate mortgage averaged 3.88% in the June 29 week, down from 3.90% last week. The 15-year fixed-rate mortgage averaged 3.17%, unchanged for the week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.17%, up from 3.14%.
Those rates don’t include fees associated with obtaining mortgage loans.
The benchmark U.S. 10-year Treasury note TMUBMUSD10Y, +1.48% which mortgage rates generally track, has surged over the past few days after global central bankers started to signal that investors should expect easy-money policies to be unwound. Their stance comes even as, in the U.S. at least, inflation readings and other economic data remain subdued.
The 30-year fixed-rate mortgage hadn’t been this low since the week of the November election, just before a bond rout sent yields flying on expectations of stronger growth and inflation.
Economists forecast mortgage rates would average about 4.50% in 2017, but so far they’ve averaged 4.08%.