Treasury Bond Yields lower this week – Bond yields dropped this week after reaching multi-year highs last week. The 10-year Treasury bond closed the week yielding 3.15%, down from 3.23% last week. The 30-year Treasury bond yield ended the week at 3.32%, down from 3.40% last week. We watch treasury bond yields because mortgage rates follow bond yields.
Mortgage rates at highest level in 8 years – The October 11, 2018 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 4.90%, up sharply from 4.71% last week. The 15-year fixed was 4.29%, up from 4.15% last week. The 5-year ARM was 4.07%, up from 4.01% last week. Bond yields dropped later in the week. Next weeks mortgage rates will be slightly lower.
Inflation tame in September – The consumer price index (CPI) rose just 0.1% for the month in September, and 2.3% from one year ago. That was below expectations of 0.2%, and 2.4%.