Long-term Rates Possibly Retreating Again

Freddie Mac's most recent Primary Mortgage Market Survey shows the long-term mortgage rate that dominates the market has inched up However, recent benchmark bond market activity suggests the upward trend in rates could weaken slightly. As of midday on May 7, a recent notable rise in the benchmark 10-year bond yield from a point below 3.0% to points solidly above it had given up a little bit of ground and was at about 3.25%. An influential employment report due on May 8 is expected to play a role in what yields and rates do in the near future. The average rate on the 30-year fixed-rate mortgage inched up to 4.84% in the week ended May 7, according to Freddie Mac. In other rate-related news, the European Central Bank has cut the interest rate on its main refinancing operations of the Eurosystem by another 25 basis points to 1.00% and the rate on the marginal lending facility by 50 bp to 1.75%. It left the rate on its deposit facility unchanged at 0.25%.