Long-term mortgage rates off a smidgen

WASHINGTON — Long-term U.S. mortgage rates are down this week amid a restrained homebuying season this summer.

Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate mortgages slipped to 4.59 percent from 4.60 percent last week. Long-term loan rates have been running at their highest levels in seven years. The average benchmark 30-year rate reached a high this year of 4.66 percent on May 24. By contrast, the rate stood at 3.90 percent a year ago.

The average rate on 15-year fixed-rate loans fell to 4.05 percent this week from 4.08 percent last week.

Higher mortgage rates combined with steadily rising home prices have dampened home sales this summer despite the robust economy and job market.

The Federal Reserve recently left its key interest rate unchanged but signaled further gradual rate hikes as long as the economy stays healthy.

To calculate average mortgage rates, Freddie Mac surveys lenders across the U.S. between Monday and Wednesday each week.

The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates.

The average fee on 30-year fixed-rate mortgages climbed to 0.5 point from 0.4 point last week. The fee on 15-year mortgages also rose to 0.5 point from 0.4 point.

The average rate for five-year adjustable-rate mortgages fell to 3.90 percent from 3.93 percent last week. The fee rose to 0.3 point from 0.2 point.

Also Thursday, major U.S. indexes stood stock-still for the third straight day as gains for retailers were canceled out by losses for banks and other companies.

Energy companies again headed lower after a sharp drop in oil prices the day before. Amazon and media company Viacom led consumer-focused companies higher. The Nasdaq composite inched higher and notched its eighth gain in a row.

Banks fell along with interest rates after the Labor Department reported that wholesale prices were little changed in July. That's a sign inflation pressures weakened slightly, which could encourage the Federal Reserve to go slower in raising interest rates.

Trading this week has been light, and investors seem to have set aside their trade worries. The S&P 500 made a solid gain on Monday but has hardly budged since. The VIX, a measure of how much volatility investors expect, has fallen to its lowest level since early January.

“It's not that risk has gone away,” said JJ Kinahan, chief market strategist for TD Ameritrade. “Quantifiable risk is not there right now.”

The Labor Department said wholesale prices were unchanged in July. Gas and food prices slipped, and soybeans prices tumbled, likely reflecting a buildup in stockpiles after China imposed tariffs on them in retaliation for U.S. duties.