US mortgage rates fall below 3% for first time since February as housing market cools

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Thomas A. Ferrara/Newsday RM via Getty ImagesThe reading marks a third weekly decline and places the rate below 3% for the first time since February.

The rate climbed back above 3% earlier this year, but now it's sinking once again as the buying spree hits new snags. That could give potential buyers at least a little help as home prices sit at record highs. . The reading marks a third weekly decline and places the rate at its lowest point since late February.

Yet the headline mortgage rate began to edge higher in January as vaccination and reopening hopes led investors to dump Treasurys for riskier assets. The sell-off boosted mortgage rates for several weeks and defied the Fed's messaging that it still planned to hold rates near zero through 2023.

 

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