After holding relatively flat last week, the 10-year Treasury yield fell 4 basis points this week. The 30-year mortgage rate moved in tandem with Treasury yields, dropping 3 basis points to 3.90 percent. Earlier this week, Federal Reserve officials highlighted the influence of continued weak inflation data on rates.
The 30-year mortgage rate fell 2 basis points to 3.88 percent this week. However, the majority of this Primary Mortgage Market Survey® (PMMS®) was conducted prior to Tuesday’s sell-off in the bond market which drove Treasury yields higher. Mortgage rates may increase in next week’s survey if Treasury yields continue to rise.
The 30-year mortgage rate rose 2 basis points over the week to 3.91 percent. However, Freddie Mac’s Primary Mortgage Market Survey® (PMMS®) was conducted before investors drove Treasury yields sharply lower in a reaction to the surprisingly weak CPI release. If that drop in yields sticks, mortgage rates are likely to follow in next week’s survey.