The average interest rate on the most popular U.S. home loan dropped to its lowest level since September as more evidence inflation is past its peak sent Treasury yields lower, data from the Mortgage Bankers Association (MBA) showed on Wednesday.
The average contract rate on a 30-year fixed-rate mortgage fell by 19 basis points to 6.23 percent for the week ended Jan. 13. Financial markets have been buoyed by a string of recent data that shows high inflation is slowing, allowing the Federal Reserve to scale back its hefty interest rate hikes and plan a stopping point this spring.
The yield on the 10-year note acts as a benchmark for mortgage rates….