U.S. 30-Year Mortgage Contract Rate Falls to 7.41% Before Jobless Claims

The average contract rate on conforming 30-year fixed mortgages fell to 7.41% last week, providing a borrowing-cost reading before new jobless claims and the Federal Reserve’s next meeting.

The rate was 7.50% the previous week, a decline of 0.09 percentage point. The latest weekly measure covers the period ended Oct. 16 and mortgages with conforming loan balances.

U.S. Treasury yields moved in different directions Wednesday: the 10-year and 30-year yields edged lower, while the two-year yield edged higher. The 10-year Treasury yield serves as a benchmark for mortgage lending. The mortgage rate measures a separate, earlier period.

Initial jobless claims for the week ended Oct. 17 are due Thursday, Oct. 22. Claims for the previous week totaled 199,000, up 1,000 from the revised prior-week figure of 198,000.

The Federal Reserve’s next meeting is scheduled for Oct. 27-28.