Yields on mortgage bonds of the government-sponsored enterprises Fannie Mae and Freddie Mac tumbled Friday, likely pushing down interest rates on new residential loans after a recent jump.

Increases last week, spurred in part by a spike in Treasury yields, at one point were as big as any since 1984, before narrowing to only the most since late January. But on Friday, yields on Fannie's current-coupon 30-year fixed-rate mortgage bonds declined 0.21 percentage point, to 4.36% as of 11:30 a.m. in New York. That was still up from 3.94% on May 20.

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