Updated
Updated · abcnews.com · Aug 20
U.S. 30-Year Mortgage Rate Eases to 6.65% as Treasury Buybacks Pull Down Yields
Updated
Updated · abcnews.com · Aug 20

U.S. 30-Year Mortgage Rate Eases to 6.65% as Treasury Buybacks Pull Down Yields

3 articles · Updated · abcnews.com · Aug 20

Summary

  • Freddie Mac’s benchmark 30-year mortgage rate slipped to 6.65% from 6.67%, marking a second straight weekly decline, while the 15-year rate edged down to 5.95% from 5.96%.
  • Treasury’s plan to at least double bond buybacks over the next few months helped push yields lower after the 10-year Treasury hit its highest level in more than a year; it stood at 4.71% midday Thursday.
  • Rates still remain above year-ago levels—6.58% for 30-year loans and 5.69% for 15-year mortgages—because bond yields have stayed elevated since the late-February U.S.-Iran war and the oil-driven inflation fears it sparked.
  • Higher borrowing costs have kept pressure on housing demand, with the market in a slump since 2022, existing-home sales stuck at a 30-year low last year, and July sales slowing again.

Insights

With mortgage rates stubbornly high and prices breaking records, what hidden economic trigger could finally shatter this affordability crisis?
Will the Treasury's latest bond buyback strategy actually save homebuyers, or is it just a temporary illusion?
Could this slight drop in mortgage rates secretly ignite a demand surge that pushes housing prices even further out of reach?