Mortgage rates stayed flat at 6.76% this week as the Treasury yields that underpin them held largely steady, according to Freddie Mac data.
Fifteen-year mortgage rates moved slightly lower, averaging 5.89% in the week through Wednesday, from 5.92% a week ago.
Financial markets remained calm for another week amid limited surprises in economic data and few updates on trade negotiations. The Federal Reserve left benchmark interest rates unchanged, as expected, saying that economic uncertainty has increased but the job market still looks solid.
Read more: When will mortgage rates go down?
“The biggest movers for mortgage rates this week were jobs and the Fed,” Kara Ng, senior economist at Zillow Home Loans, said in a statement. “With the unemployment rate holding steady, the Fed has the gift of time to see how government policies impact the economy before adjusting rates.”
Mortgage rates aren’t directly controlled by the Fed, but they do move in response to expectations about future interest rate policy. President Trump has repeatedly urged the central bank to cut interest rates, which it has so far resisted. Following Wednesday’s Fed meeting, traders slightly reduced their expectations of rate cuts in June or July, seeing a 20.4% chance of a cut next month, according to CME FedWatch.
Steady mortgage rates helped boost mortgage applications last week. Applications to purchase a new home and for refinancing each rose 11% week over week through Friday, according to the Mortgage Bankers Association.
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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