Rates for home loans sank to their lowest level of the year this week as inflation remained stubbornly low and fears about a possible government shutdown mounted, mortgage provider Freddie Mac said Thursday.
The 30-year fixed-rate mortgage averaged 3.86% during the August 24 week, down three basis points to a nine-month low. The 15-year fixed-rate mortgage averaged 3.16%, unchanged during the week. The 5-year Treasury-indexed adjustable-rate mortgage averaged 3.17%, up one basis point.
Those rates don’t include fees associated with obtaining mortgage loans.
The 30-year fixed-rate mortgage followed the path of the 10-year Treasury yield TMUBMUSD10Y, -1.19% , which sank six basis points during the week, moving opposite of its price.
Demand for government bonds has remained strong as political uncertainty jangles investors’ nerves and as inflation continues to elude central banks around the world.
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