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The average rate paid on 30-year mortgages in the US has fallen for the fourth consecutive week to its lowest level this year, in a further sign that geopolitical tensions and slow implementation of the administration’s economic agenda are weighing on interest rates.
The average 30-year fixed rate mortgage had an interest rate of 4.08 per cent for the week ending April 13, down from 4.1 per cent last week, but still higher than it was a year ago when it averaged 3.58 per cent.
It also comes after a much lower than expected headline number for the amount of jobs added in March, reported last Friday. A strong rally in US Treasury markets has sent the 30-year bond down to 2.91 per cent from 2.99 per cent at the start of the week.
“Following a weak March jobs report, the 10-year Treasury yield dropped about 5 basis points [0.05 percentage points]. The 30-year mortgage rate fell 2 basis points to 4.08 percent. Not only did the average 30-year fixed-rate mortgage decline for the fourth consecutive week in our survey, it also fell to a new 2017 low,” said Sean Becketti, chief economist at Freddie Mac.