Freddie Mac data shows a decline in long-term mortgage rates as bond yields retreat following geopolitical developments.
The average 30-year fixed mortgage rate in the US fell to 6.47% this week, down from 6.52% last week. The decline follows a retreat in Treasury yields after progress in easing geopolitical tensions, particularly the announced end to the Iran conflict.
A year ago, the 30-year rate stood at 6.81%, while the 15-year fixed-rate mortgage dropped to 5.81% from 5.84% last week. Mortgage rates typically track the 10-year Treasury yield, which has been influenced by Federal Reserve policy and investor expectations on inflation and economic growth.
The Fed held its benchmark interest rate steady this week but signaled potential rate hikes later this year. Inflation remains above the central bank’s 2% target, keeping policymakers cautious.