(Adds background, table)
NEW YORK, May 25 The average rate on U.S.
30-year mortgages fell to its lowest level since November with a
decline in U.S. bond yields on concerns about a delay in federal
fiscal stimulus and safe-haven bids for Treasuries, Freddie Mac
said on Thursday.
The borrowing cost on 30-year mortgages, the most widely
held type of U.S. home loan, averaged 3.95 percent in the week
ended May 25, which was the lowest since 3.94 percent in the
Nov. 17, 2016 week. Last week, the average 30-year rate was 4.02
percent, the mortgage finance agency said.
Treasury yields have decreased the past couple of weeks as
news about a widening probe into U.S. President Donald Trump's
2016 campaign's possible tied to Russia raised concerns about
Trump and Republicans' ability to deliver tax cuts and
infrastructure spending this year, which would bolster the U.S.
Appetite for U.S. government bonds has also been supported
this week by safe-haven bids among investors who are nervous
following Moody's downgrade of China's bond rating and a deadly
suicide bombing in Manchester, England.
A week ago, benchmark 10-year Treasury yield
touched a near one-month low at 2.181 percent before rebounding
a bit this week. It was 2.261 percent at 11:07 a.m. (1507 GMT)
on Thursday, Reuters data showed.
Below are the latest average mortgage rates in the week of
May 25 Freddie Mac tracked:
Loan type Latest week Previous Year-ago (pct)
(pct) week (pct)
30-year fixed 3.95 4.02 3.64
15-year fixed 3.19 3.27 2.89
5-year adjustable 3.07 3.13 2.87
(Reporting by Richard Leong; Editing by Chizu Nomiyama)