US mortgage rates dip to 6.09% despite bond market volatility

As reported by The Economic Times, citing data from Freddie Mac, the average rate on a 30-year fixed home loan declined to 6.09 per cent from 6.11 per cent a week earlier. Over the past year, the lowest 30-year rate was 6.06 per cent, according to figures referenced from Yahoo Finance.

Bond yields were unsettled through the week. Treasury yields initially fell but surged after a stronger-than-expected jobs report was released on Wednesday. However, the bond market recalibrated quickly, with yields returning to earlier lower levels within a day.

The average rate on a 15-year fixed mortgage also dropped to 5.44 per cent from 5.50 per cent last week.

Freddie Mac Chief Economist Sam Khater said the US economy remains resilient, supported by strong employment levels. As reported by The Economic Times, Khater noted that easing mortgage rates are helping improve affordability and drawing more buyers into the market. Mortgage applications have risen compared to the same period last year.

Separate data from Zillow, cited via Yahoo Finance, showed the national average 30-year fixed mortgage rate at 5.87 per cent. The 20-year fixed rate stood at 5.80 per cent, while the 15-year fixed rate matched Freddie Mac’s reading at 5.44 per cent. Adjustable-rate mortgages averaged 6.01 per cent for a 5/1 ARM and 6.00 per cent for a 7/1 ARM.

For veterans, 30-year VA loan rates were around 5.36 per cent and 15-year VA loans at 4.95 per cent. Experts cautioned that these figures represent national averages and are rounded.

Refinance rates remained broadly aligned with purchase rates. The 30-year refinance rate was about 6.05 per cent, the 20-year refinance rate 6.02 per cent, and the 15-year refinance rate 5.52 per cent. Analysts say refinancing typically makes sense when borrowers can secure a new rate that is 1 to 2 per cent lower than their existing loan.

While lenders such as Chase and Citibank are offering competitive terms, mortgage rates remain well above pandemic-era lows. The lowest recorded 30-year average was 2.65 per cent in January 2021, according to Yahoo Finance.

For now, despite market swings, rates appear to be stabilising near recent lows, offering cautious optimism to the US housing market.

(With Inputs from The Economic Times)

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)