The average rate for a benchmark 30-year loan has held at 3.71 percent for the second week in a row, which is 1 basis point above the average rate at the same time last year and 26 basis points below the 3.97 percent rate in place prior to the Fed’s first rate hike in December.
And in addition to the Fed having halved their original expectations of a full-point rise in the Federal Funds Rate by the end of the year, dovish comments from Federal Reserve Chair Janet Yellen on Tuesday have driven the 10-year Treasury yield down over 10 basis points, a dip which could flow through to mortgage rates over the next couple of weeks.