Small font size A Larger text size A Largest text size A

US 30-year fixed-rate mortgage falls to 6.60%

BY Reuters | AGENCY | 12:31 PM EST

WASHINGTON (Reuters) - U.S. mortgage rates dropped to the lowest level in nearly two months this week, a trend that if sustained could boost home sales in the coming months.

The average rate on the popular 30-year fixed-rate mortgage fell to 6.60%, the lowest level since the week ending Oct. 24, from 6.69% last week, mortgage finance agency Freddie Mac said on Thursday. It has now declined for three straight weeks. The rate averaged 6.95% during the same period a year ago.

"The combination of mortgage rate declines, firm consumer income growth and a bullish stock market have increased homebuyer demand in recent weeks," said Sam Khater, Freddie Mac chief economist. "While the outlook for the housing market is improving, the improvement is limited given that homebuyers continue to face stiff affordability headwinds."

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)

More Fixed Income News

Trump Policies To Kick BoJ Trade Back Into Gear: Is Japan The New Inflation Play? BY Benzinga |ECONOMIC 02:32 PM EST
Judge orders more PREPA mediation despite reported dead end BY SourceMedia Bond Buyer |MUNICIPAL 02:30 PM EST
GRAINS-Corn, soy, wheat fall as dollar gains, export sales disappoint BY Reuters |ECONOMIC 02:15 PM EST
AM Best Affirms Credit Ratings of Chubb Seguros Panama S.A. BY Business Wire |CORPORATE 01:27 PM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article