Average mortgage rates in the United States continue to fall; 30 years at 2.90% | national
WASHINGTON (AP) – Mortgage rates continued to fall this week, following lower yields on Treasuries as the bond market continues to signal concerns about the strength of the recovery from the pandemic recession.
Mortgage buyer Freddie Mac reported Thursday that the 30-year average home loan loan had fallen from 2.98% last week to 2.90%. In contrast, the rate stood at 3.03% a year ago.
The rate on a 15-year loan, a popular option among homeowners refinancing their mortgages, fell to 2.20% from 2.26% last week. Economists at Freddie Mac expect economic growth to gradually push mortgage rates higher in the second half of the year.
The bond market has been signaling concerns about the economic recovery for months, particularly that it may have peaked and is now stabilizing at a more sustained pace. Mortgage rates tend to follow movements in the yield on 10-year Treasuries – which rise when bond prices fall. The benchmark yield has been falling steadily in recent weeks as traders shifted money into bonds. It was listed at 1.30% around noon Thursday, after reaching 1.74% at the end of March.
Market concerns also spilled over to equities, which were broadly lower on Thursday as investor cautiousness set in after the market hit a series of record highs last week.
Last week’s government labor market report in June showed that in an encouraging wave of hiring, American employers created 850,000 jobs. This was well above the average for the previous three months and a sign that companies may have an easier time finding enough workers to fill vacancies. But the Labor Department reported Thursday that the number of Americans claiming unemployment benefits last week increased by 2,000 from the previous week to 373,000.
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