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NEW YORK, March 23 U.S. 30-year mortgage rates
fell from 11-week highs as Treasury yields decreased in the wake
of indications by the Federal Reserve last week that it will
remain on a gradual path to raising interest rates, according to
mortgage finance agency Freddie Mac on Thursday.
The borrowing cost on 30-year mortgages, the most widely
held type of U.S. home loan, averaged 4.23 percent in the week
ended March 23. This compared with the prior week's 4.30 percent
which was the highest since 4.32 percent in the week ended Dec.
29, it said.
Treasury yields have fallen on renewed demand
for bonds in the wake of the Fed's hint it would not accelerate
its pace on rate hikes, as it raised key short-term rates by a
quarter percentage point as expected.
The bond market rally was also spurred by doubts about U.S.
President Donald Trump and the Republican-controlled Congress to
enact quickly their promises on tax cuts, looser regulations and
Benchmark 10-year yield was 2.41 percent in
early Thursday trading, compared with 2.63 percent on March 14,
the day before the Fed's second rate increase in three months.
Below is a summary of Freddie Mac's average mortgage rates
in the week ended March 23:
Loan type Latest week (pct) Week ago (pct) Year ago (pct)
30-year fixed 4.23 4.30 3.71
15-year fixed 3.44 3.50 2.96
5-year ARM 3.24 3.28 2.89
(Reporting by Richard Leong; Editing by Chizu Nomiyama)