Average US 30-year mortgage rate slips to 4.02 percent

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7 year Adjustable Rate Mortgages are on the books at 3.500% with a starting April of 3.684%.

30-year fixed-rate mortgage (FRM) averaged 4.02 percent with an average 0.5 point for the week ending May 18, 2017, down from last week when it averaged 4.05 percent.

The 15-year FRM also decreased slightly to 3.27%, down from 3.29% last week, but still up from 2.81% last year.

On Thursday, the benchmark 10-year Treasury yield US10YT=RR fell to a one-month low at 2.18 percent as safety bids for US government bonds grew on worries about a scandal around Brazilian President Michel Temer, spurring a rout in the Brazilian stock market .BVSP.

ARM loans in the 3 year category are being quoted at 2.750% now with a starting April of 3.853%.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week. The government-backed mortgage-backer aggregates rates weekly from 125 lenders from across the country to come up with national average mortgage rates.

Quote Attributed to Sean Becketti, chief economist, Freddie Mac. "The delayed impact of the associated decline in Treasury yields may push mortgage rates lower in next week's survey".

Political drama in Washington, D.C. prompted mortgage rates to fall today as investors scale back their expectations for the passage of legislation that might boost economic growth, including tax reform and infrastructure spending. The 10-year Treasury bond slipped near below 2.3% in overnight trading Tuesday.

10 year fixed rate mortgages have been quoted at 3.250% and an April of 3.430% today. One point equals 1 percent of the loan amount.

Meanwhile, mortgage applications dwindled last week, according to the latest data from the Mortgage Bankers Association. "The year-over-year increase was driven by conventional loans, which tend to be larger, leading to a record high for the average purchase loan size". ARM volume is now up 24 percent from a year ago.

The drop may be due in part to higher home prices and, in turn, fewer entry-level buyers able to afford a home.

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