Yields on Fannie Mae and Freddie Mac mortgage securities fell for a third straight trading day Monday from the highest level since the Federal Reserve Board announced plans to buy home loan bonds in November.
The yield on Fannie's current-coupon 30-year fixed-rate mortgage bonds fell 10 basis points from Friday, to 4.82% as of 9 a.m. Eastern Daylight Time. That's down from this year's high of 5.07% on June 10 but up from 3.94% on May 20; the increase has boosted interest rates on new home loans by about the same amount.
