Mortgage rates dip for 2nd week in row

Mortgage rates tumbled for the second week in a row as long- term bond yields fell to their lowest level in a month.

According to the latest data released Thursday by Freddie Mac, the Federal Home Loan Mortgage Corp., the 30- year fixed- rate average slid to 4.14 percent with an average 0.5 point. ( Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.23 percent a week ago and 3.71 percent a year ago.

The 15- year fixed- rate average dropped to 3.39 percent with an average 0.4 point. It was 3.44 percent a week ago and 2.98 percent a year ago. The five- year adjustable rate average slipped to 3.18 percent with an average 0.4 point. It was 3.24 percent a week ago and 2.90 percent a year ago.

The failure by the House of Representatives to pass health care legislation last week fueled the move by investors from stocks to bonds, driving down yields. The yield on the 10- year Treasury fell to 2.38 percent Monday, its lowest level since late February.

Because mortgage rates tend to follow the movement of long- term bonds, home loan rates also dropped.

Rates aren’t expected to move much in the coming week. According to Bankrate. com, which puts out a weekly mortgage- rate trend index, nearly two- thirds of the experts it surveyed say rates will remain relatively stable.