U.S. 30-year mortgage rates fell to the lowest in three weeks, reducing borrowing costs for homebuyers as the residential-property market strengthens.
The average rate for a 30-year fixed mortgage dropped to 4.31 percent in the week ended today from 4.37 percent, McLean, Virginia-based Freddie Mac said in a statement. The average 15-year rate slipped to 3.39 percent from 3.41 percent.
Federal Reserve Chairman Ben S. Bernanke is expected to begin trimming monthly bond-buying in September, according to half of the economists in a July 18-22 survey by Bloomberg News. Mortgage rates for 30-year loans have decreased after jumping to the highest level in two years earlier this month on speculation the Fed will begin to pare its purchases. Higher rates have pushed up borrowing costs for homebuyers who are competing for a tighter inventory of properties.
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