Mortgage Rates Fall Slightly to 6.65% Despite Bond Market Turmoil and Growing Concerns About Federal Debt

Mortgage rates dipped slightly this week, despite growing turmoil in the bond markets that help determine rates as investors grow wary of inflation and rising federal debt.The average rate on 30-year fixed home loans dipped to 6.65% for the week ending Aug. 20, down 2 basis points from 6.67% the previous week, according to Freddie Mac. For perspective, rates averaged 6.58% one year ago."The 30-year fixed-rate mortgage declined this week averaging 6.65%," says Sam Khater, Freddie Mac's chief economist. "With a dip in rates providing modest relief for homebuyers, it’s important to remember borrowers can potentially save thousands by shopping around for the best mortgage rate.”This comes after the 30-year Treasury yield hit a 19-year high earlier this week, spurring Treasury Secretary Scott Bessent to intervene with a buying spree of long-dated bonds, a move intended to prop up prices and surpress yields.However, action on the 10-year yield, which is closely correlated to mortgage rates and more crucial for homebuyers, has remained more muted, notes Realtor.com® Senior Economist Jake Krimmel."Still, the action at the long end of the curve underscores fears over inflation and the fisca...