Average US Mortgage Rates Decline to a Rate of 2.90% for a 30-year Loan

Tuesday, July 13, 2021

Average US Mortgage Rates Decline to a Rate of 2.90% for a 30-year loan

Tracking a significant decline in yields on Treasury securities, the bond market signals pressing concerns as mortgage rates decline persistently even this week.

As reported by mortgage buyer Freddie Mac, Thursday, July 8, a 30-year home loan average mortgage rate has moved from 2.98% to 2.90% in the previous week particularly owing to the strength of recovery from the pandemic recession period.  As of a year ago, the rates stood at 3.03%.

The 15-year loan, which has been a popular option among homeowners refinancing their mortgages, also fell on in its average rate from 2.26% to about 2.20% in the last week. However, mortgage rates are expected by Freddie Mac economists to be pushed up higher by the economic growth in the second half of the year.

For months now, economic recovery concerns have been signaled by the economy bond market, considering a peak in recovery and now a gradual leveling to a more stable pace. Average rates on home loans tend to follow the yields on the 10-year Treasury note as it moves up when bond prices are low.

As traders have their money shifted into bonds, the benchmark yields fall steadily and so in recent weeks, having been marked at 1.30% around midday Thursday in contrast to a high rate of about 1.74% as of late March.

Market concerns also showed up in stocks which, after investor caution set in, became broadly lower as of Thursday after a series of record highs last week hit by the market.

Asf last week on the job market, the June government report showed that U.S employers added 850,000 jobs in an encouraging burst of hiring, going well above the average of the past three months.

This proved to be a sign that companies may find it easier to recruit or employ enough labor to fill in for open jobs in the near future. On Thursday, it was reported by the Labor Department that the figures for Americans seeking unemployment benefits as of last week had risen to 373,000 by a difference of 2,000 from the previous week.