The Treasury Department’s increased bond repurchases pushed long-term yields lower, extending a two-week decline in mortgage rates.
US mortgage rates dropped for the second straight week after the Treasury Department announced plans to double its bond buyback cap. The move aims to increase liquidity by repurchasing long-dated securities, which weighed on long-term yields.
Last week’s decline followed a modest pullback in rates, marking the first back-to-back drop in over a month. Analysts had expected yields to stabilize after recent volatility, but the Treasury’s intervention accelerated the downward trend.
The 30-year fixed mortgage rate, which averaged 6.94% last week, is now at its lowest level since mid-June, according to market data.