Freddie Mac: Mortgage Rates Low, May Get Lower

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Matthew Graham at Mortgage News Daily noted on Tuesday that mortgage rates have moved to their lowest level in two weeks, in a range of 4.00% to 4.25%, with 4.125% being the most-often offered rate for top-tier borrowers.

The rate on 15-year mortgages eased to 3.27 percent from 3.29 percent last week.

As the yield on the 10-year Treasury fell sharply Wednesday, so too did mortgage rates.

This chart shows the movement of mortgaged rates over the past year.

On Thursday, the benchmark 10-year Treasury yield US10YT=RR fell to a one-month low at 2.18 percent as safety bids for USA government bonds grew on worries about a scandal around Brazilian President Michel Temer, spurring a rout in the Brazilian stock market .BVSP.

"The 30-year mortgage rate fell three basis points this week to 4.02%", Freddie Mac Chief Economist Sean Becketti said.

30 year loan interest rates at Suntrust Banks (NYSE:STI) start at 3.990% today with an April of 4.1081%. Bond prices rose as investors shunned riskier assets.

Wednesday's selloff - the Dow took its biggest dive in eight months - took place after Freddie Mac polled lenders for this week's survey. The 10-year Treasury bond slipped near below 2.3% in overnight trading Tuesday. And with the bond market in favor for the time being, late-spring home buyers are getting a break: even lower mortgage rates., which puts out a weekly mortgage rate trend index, found that more than half of the experts it surveyed say rates will go down.

"Recent political turmoil and some not-so-great economic data have the stock market a bit jittery", Kuiper said. The best 30 year jumbo loans are 4.400% with an April of 4.4678%. The faster growth for conventional loans, which tend to be larger, led to another record high for the average purchase loan size at $322 thousand.