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NEW YORK, May 18 U.S. mortgage rates fell in
step with bond yields in the wake of weaker-than-expected
domestic economic data and as investors scaled back expectations
about interest rate increases by the Federal Reserve in 2017,
according to Freddie Mac on Thursday.
The borrowing cost on 30-year mortgages, the most widely
held type of U.S. home loan, averaged 4.02 percent in the week
ended May 18, down from 4.05 percent the previous week, the
mortgage finance agency said.
Mortgage rates will likely fall next week as 10-year
Treasury yields have declined on safe-haven demand for bonds due
to concerns about potential delays in tax cuts and other fiscal
stimulus amid probes into U.S. President Donald Trump's 2016
campaign team and Russia.
On Thursday, the benchmark 10-year Treasury yield
fell to a one-month low at 2.18 percent as safety
bids for U.S. government bonds grew on worries about a scandal
around Brazilian President Michel Temer, spurring a rout in the
Brazilian stock market.
"The delayed impact of the associated decline in Treasury
yields may push mortgage rates lower in next week's survey,"
Freddie Mac chief economist Sean Becketti said in a statement.
Below are the latest average mortgage rates in the week of
May 18 Freddie Mac tracked:
Loan type Latest Previous Year-ago
week (pct) week (pct) (pct)
30-year fixed 4.02 4.05 3.58
15-year fixed 3.27 3.29 2.81
5-year adjustable 3.13 3.14 2.80
(Reporting by Richard Leong; Editing by Bernadette Baum and