Published: Fri, May 19, 2017
Economy | By Annette Adams

Average US 30-year mortgage rate slips to 4.02 percent

Average US 30-year mortgage rate slips to 4.02 percent

"The 30-year mortgage rate fell 3 basis points this week to 4.02 percent", Freddie Mac chief economist Sean Becketti said in a statement.

It was 3.58% in the year-ago week.

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

Mortgage buyer Freddie Mac said Thursday the average rate on 30-year fixed-rate home loans slipped to 4.02 percent from 4.05 percent last week. A year ago at this time, the 15-year FRM averaged 2.81 percent. Mortgage rates are closely related to yields on long-term government bonds, which have been in high demand amid the turmoil in Washington.

USA markets have been in turmoil this week over concerns about President Donald Trump's economic agenda.

While the White House scandal was the catalyst for a measurable drop in the past couple days, mortgage rates had already moved a bit lower thanks to a slower than expected rise in consumer prices.

Bankrate.com, which puts out a weekly mortgage rate trend index, found that more than half of the experts it surveyed say rates will go down.

Mortgage rates will likely fall next week as 10-year Treasury yields have declined on safe-haven demand for bonds due to concerns about potential delays in tax cuts and other fiscal stimulus amid probes into U.S. President Donald Trump's 2016 campaign team and Russian Federation. One point equals 1 percent of the loan amount.

Meanwhile, mortgage applications dwindled last week, according to the latest data from the Mortgage Bankers Association.

The refinance share of mortgage activity accounted for 41.1 percent of all applications, its lowest level since September 2008.

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