Interest rates for home loans reversed course this week, notching a gain for the first time in six weeks as markets cheered the likelihood of a pro-European Union presidency in France and the broad outlines of investor-friendly tax reforms from President Donald Trump, Freddie Mac said Thursday.
The 30-year fixed-rate mortgage averaged 4.03%, up six basis points during the week. The 15-year fixed-rate mortgage averaged 3.27%, up from 3.23%. The 5-year Treasury-indexed hybrid-adjustable-rate mortgage averaged 3.12%, up two basis points.
The 10-year Treasury yield TMUBMUSD10Y, -0.78% which mortgage rates have historically tracked, rose about 10 basis points during the week as investors embraced risk in the wake of a strong showing for French centrist Emmanuel Macron.
Also read: 10-year Treasury yield back above 2.3% as investors shun havens
But gathering strength in the housing market is also helping stabilize mortgage rates. Both new and existing home sales were stronger than expected in the most recent readings, Freddie Chief Economist Sean Becketti noted in a release.