U.S. mortgage rates fell, reducing borrowing costs for homebuyers after the 30-year average jumped to a two-year high last week.
The average rate for a 30-year fixed mortgage dropped to 4.37 percent in the week ended today from 4.51 percent, which was the highest since July 2011, McLean, Virginia-based Freddie Mac said in a statement. The average 15-year rate slipped to 3.41 percent from 3.53 percent.
Rates are adjusting after spiking over expectations that the Federal Reserve will scale back bond purchases as the economy returns to health. While the 30-year average has climbed from a near-record low of 3.35 percent in early May, the higher rates probably won’t slow the U.S. housing rebound, according to Frank Nothaft, chief economist at Freddie Mac.