© Reuters. A carpenter works on building new townhomes that are still under construction while building material supplies are in high demand in Tampa, Florida, U.S., May 5, 2021. REUTERS/Octavio Jones
(Reuters) – Interest rates on the most common type of U.S. home loan fell for a sixth straight week to the lowest in almost four months on the back of a bond market rally that has driven down yields on the securities used to set mortgage costs, data out Thursday showed.
Mortgage finance giant Freddie Mac said the average rate on a 30-year fixed rate mortgage fell to 7.03% as of Thursday from 7.22% the week before. That is the lowest since mid-August.
Since hitting their highest levels in more than two decades in October near 8%, mortgage rates have tumbled as bond markets have rallied on expectations the Federal Reserve is done with its aggressive tightening campaign to rein in inflation.