Mortgage rates dropped this week, however, they are not expected to stay down for long as the Treasury yield inches higher.

“The 30-year mortgage rate fell two basis points to 3.88% this week,” Freddie Mac Chief Economist Sean Becketti said. “However, the majority of our survey was conducted prior to Tuesday’s sell-off in the bond market which drove Treasury yields higher.”

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(Source: Freddie Mac)

The 30-year fixed-rate mortgage decreased to 3.88% for the week ending June 29, 2017. This is down from last week’s 3.9%, but up from last year’s 3.48%.

The 15-year FRM, however, remained the same at 3.17%, up from 2.78% last year.

The five-year Treasury-indexed hybrid adjustable-rate mortgage increased this week to 3.17%. This is up from last week’s 3.14% and from last year’s 2.7%.

“Mortgage rates may increase in next week’s survey if Treasury yields continue to rise,” Becketti said.