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Last week, the average 30-year fixed mortgage rate tracked by Freddie Mac hit a calendar-year low of 6.35%. It’s likely this week’s reading could come in even lower given that the daily rate reported by Mortgage News Daily was 6.13% on Tuesday.

In recent months, the average 30-year fixed mortgage rate has edged down.

Part of the decline can be attributed to a continued gradual compression of the “mortgage spread”—the difference between the 10-year Treasury yield and the average 30-year fixed mortgage rate—as some investors slowly regain their appetite for mortgage-backed securities (MBS) and help fill the void left by the Federal Reserve when it stopped buying MBS in sprin

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