Mortgage rates fall again as Trump trade fizzles out MARKETWATCH 10:34 AM ET 2/9/2017
Forget the "reflation trade" - bond yields are looking more like deflategate.
Rates for home loans fell as expectations for stronger economic growth came back to earth, mortgage provider Freddie Mac said Thursday.
The 30-year fixed-rate mortgage averaged 4.17% during the February 9 week, down two basis points during the week. The 15-year fixed-rate mortgage averaged 3.39%, down from 3.41% last week.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.21%, down from 3.23%.
Mortgage rates followed the path of the 10-year Treasury yield , which was down about 10 basis points during the week. Rates surged nearly a full percentage point after the election on expectations of faster economic growth sparking inflation. Many housing economists forecast rates would average 4.50% (http://www.marketwatch.com/story/housings-big- question-what-will-happen-when-buyers-think-4-rates-are-crazy-2016-12-22) or even higher during 2017.
But "mixed economic releases such as Friday's jobs report and uncertainty about the Administration's fiscal policies have contributed to the holding pattern in rates," Freddie noted in a release. The benchmark 30-year fixed is now 15 basis points lower than its level at the end of 2016.
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