Mortgage Rates Fall for Third Week, Increasing Home Loan Applications

Mortgage rates have been falling for three consecutive weeks, leading to an increase in home loan applications. The Federal Reserve's influence on mortgage rates through the yield on 10-year Treasuries is reflected in the trend. Optimism about lower inflation and expectations of the Fed being done with interest rate hikes have led to a strong rally in the bond market. However, the downward trend in mortgage rates is challenging for prospective homebuyers and current homeowners.