Overall bond yields fell in July, as uncertainty surrounding the economic environment was more concerning than inflationary pressures. The yield on the 10-year Treasury bond fell to 2.67% in July, down from 2.98% in June. Analysts expect the Fed to eventually halt rate increases and even reduce rates should economic conditions worsen, leading to lower rates.
Mortgage rates eased with the average 30-year conforming rate falling below 5.5%, a slight buffer to the rapidly rising loan rates from the beginning of the year.
Sources: FreddieMac; U.S.Treasury