Mortgage rates have fallen to their lowest level in six weeks

Trade dispute driving most of the movement

Trade discussions between the United States and China continue to have an outsize influence on mortgage rates.

According to the latest data released Thursday by Freddie

Mac, the 30-year fixedrate average fell to its lowest level in six weeks, declining to 3.66% with an average 0.6 point. (Points are fees paid to a lender equal to 1% of the loan amount and are in addition to the interest rate.) It was 3.75% a week ago and 4.81% a year ago.

The 15-year fixed-rate aver

age dropped to 3.15% with an average 0.5 point. It was 3.2% a week ago and 4.24% a year ago. The five-year adjustable rate average slumped to 3.39% with an average 0.4 point. It was 3.44% a week ago and 4.09% a year ago.

“Once again, it was the ongoing saga of U.S.-China trade talks that drove most of the market’s movements,” said Matthew Speakman, a Zillow economist. “Despite growing optimism and the tentative agreement of an initial deal, the talks failed to yield meaningful developments in recent weeks. Ambiguities regarding the tentative deal’s details have thrown a wrench into the proceedings and reinjected doubts among investors, driving them to safer assets and nudging mortgage rates down.”

Uneasiness over the trade discussions as well as the protests in Hong Kong drove down yields on U.S. Treasurys. After flirting with 2% earlier this month, the yield on the 10-year bond fell back to 1.73% on Wednesday, exactly where it started the month. Because mortgage rates tend to follow the same path as long-term bonds, they also drifted down.

“It’s likely that market movements will be modest heading into the Thanksgiving holiday, but the possibility of traderelated developments will keep investors on their toes,” Speakman said.