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Interest rates on mortgage loans fell to 2 1/2-year low



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After several years of severe drought, many homeowners replace traditional green areas with drought-resistant gardens like Los Angeles, California. by the end of 201
6 [30959004] The 30-year fixed rate mortgage is on average 3.73% on the week of June 27, which is 11 points less, said Freddie Mac on Thursday.

The 15-year mortgage with a fixed interest rate is 3.16% on average, down 3.25%. The 5-year hybrid mortgage, regulated by the Treasury, was 3.39% on average, down by nine basis points.

Fixed mortgage loans track the 10-year US Treasury

TMUBMUSD10Y, -1.60%

which was recently near the lowest two years. Investors are turning to safer assets in unsettled times, and nerves have been damaged by geopolitical maneuvers between the United States and China, the US and Iran, the United States and Mexico, and others. Bonds are also becoming more attractive when economic growth stagnates or declines, and recent weeks have brought many signals that the downturn may be closer than expected.

Read: It's probably time to kiss to relax in the housing market

But mortgage lending rates are not just an imitation of bond yields. They are also a reflection of the way investors see the housing market. Some recent reports show that an intensified discussion of the future of Fannie Mae and Freddie Mac may worsen investor enthusiasm for mortgage bonds. This may mean that interest rates on mortgages may fall so much.

Fannie and Freddie do not make direct loans but buy them from the creditors. This allows banks and other financial services companies more flexibility to offer mortgages to additional customers. For the past few years, they are constantly responsible for about 45% of all new mortgages seized, according to data collected by the Urban Institute.

See: Selling Your Home on "iBuyer" Can Cost You Thousands

The two enterprises have been in control of the government since the financial crisis, but this year may be different. Since MarketWatch was the first to announce in January, the stars could finally catch up. The White House-friendly business had the opportunity to put its own man as head of Fannie and Freddie's regulator just as Congress basically threw the towel in offering its own reform plan.

The new regulator, Mark Calabria, has publicly stated that he does not want to upset the market and supports the broad outlines of the housing finance system that emerged in the years after the crisis. But there are still many unknowns. As the Fannie Freddy reform begins, here are the three big questions about the housing market


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