NEW YORK (Reuters) - Interest rates on U.S. 30-year fixed-rate mortgages declined for the third straight week to their lowest since early December, mortgage finance agency Freddie Mac <FMCC.PK> said on Thursday.

Mortgage rates have fallen in step with lower U.S. Treasury yields as investors have reduced their bets on rising inflation and interest rates while they await details on tax cuts, trade, infrastructure spending and looser regulations from the incoming Trump administration.

The borrowing cost on 30-year mortgages, the most widely held type of U.S. home loan, averaged 4.09 percent in the week ended on Jan. 19, down from 4.12 percent in the previous week, Freddie Mac said.

Three weeks ago, the rate averaged 4.32 percent, which was the highest since 4.33 percent in the week of April 24, 2014.


Average rates on 15-year fixed-rate and five-year adjustable mortgages also fell in the latest week.

At midday on Thursday, the benchmark 10-year Treasury yield <US10YT=RR> was up nearly 10 basis points at 2.49 percent, which was still below its more than two-year peak of 2.64 percent reached in mid-December.

Below is a summary of Freddie Mac's average mortgage rates in the week ended Jan. 19:

Loan type Latest week (pct) Week ago (pct) Year ago (pct)

30-year fixed 4.09 4.12 3.81

15-year fixed 3.34 3.37 3.10

5-year ARM 3.21 3.23 2.91

(Reporting by Richard Leong; Editing by Nick Zieminski and Lisa Von Ahn)

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