Particle.news
Download on the App Store
20 ARTICLES
·
3d ago

Mortgage Rates Tick Lower for Second Week as 30-Year Average Falls to 6.65%

Small weekly declines give limited relief because volatile Treasury yields, rising inflation expectations and fiscal pressure continue to push borrowing costs higher.

Mortgage rates slipped Friday, with the 30-year rate at 6.50%, but high bond yields and inflation worries continue to keep US home loan costs high. (Unsplash/Representative image)
Image
US mortgage rates stayed at 6.77%, while refinance and home purchase applications fell, as high borrowing costs and weak affordability hit buyers. (Pexel/Representative image)
Via zillow.com

Overview

  • Freddie Mac reported Thursday that the 30‑year fixed mortgage averaged 6.65% for the week ending Aug. 20, marking a second straight weekly decline from 6.67%.
  • The Mortgage Bankers Association’s contract-rate measure remained around 6.77% and showed total application volume essentially flat with purchase applications down and refinances up slightly yet about 18% below last year.
  • Long‑term Treasury volatility drove much of the movement in mortgage pricing this week, prompting the U.S. Treasury to expand long‑term bond buybacks after the 30‑year yield hit near 19‑year highs.
  • Higher rates are squeezing affordability, keeping homeowners with sub‑4% loans locked in, reducing inventory, and pricing many starter and price‑sensitive buyers out of the market.
  • Economists say the small dip is modest relief rather than a reversal and that the next moves in the 10‑year Treasury, upcoming inflation data and the Fed outlook will determine whether rates fall further.