U.S. Markets

U.S. mortgage rates fall in latest week: Freddie Mac

FILE PHOTO: Single family homes in newly built subdivision are shown in San Marcos, California, U.S., July 31, 2019. REUTERS/Mike Blake

(Reuters) - U.S. mortgage rates fell broadly in latest week in step with the lower bond yields, prompting expectations that lower borrowing costs would support domestic home sales and construction, Freddie Mac said on Thursday.

Interest rates on 30-year fixed-rate mortgages fell to 3.64% in the week ended Sept. 26, down from 3.73% the prior week and from 4.72% a year earlier, the home finance agency said.

Benchmark 10-year Treasury yields US10YT=RR declined nearly 7 basis points last week as the Federal Reserve lowered key lending rates for a second time in 2019.

“The fall housing market is poised to continue with steady gains in prices and solid sales activity,” said Freddie Mac chief economist Sam Khater in a statement.

The average 15-year mortgage rate slipped to 3.16% from 3.21% the week before and from 4.16% a year.

Borrowing costs on five-year adjustable-rate mortgages averaged 3.38%, down from 3.49% a week earlier. They averaged 3.97% a week ago.

Reporting by Richard Leong; Editing by Nick Zieminski