Fixed mortgage rates, which have been on a tear since the presidential election, retreated this week, falling for the first time in nine weeks.
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average tumbled to 4.2 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.32 percent a week ago and 3.97 percent a year ago.
The 15-year fixed-rate average sank to 3.44 percent with an average 0.5 point. It was 3.55 percent a week ago and 3.26 percent a year ago. The five-year adjustable rate average slipped to 3.33 percent with an average 0.4 point. It was 3.3 percent a week ago and 3.09 percent a year ago.
The retrenchment comes as investors begin to temper their enthusiasm. The post-election climb of home loan rates and selloff in the bond market was attributed to investors’ beliefs that the new administration will spend freely to boost the economy. Now reality is setting in.
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