30-year mort­gage rate high­est since May

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - — The As­so­ci­ated Press

WASH­ING­TON — Long-term U.S. mort­gage rates rose this week to high­est level since mid-May.

Mort­gage buyer Fred­die Mac said Thurs­day that the rate on 30-year, fixed-rate mort­gages rose to an av­er­age 3.96 per­cent from 3.88 per­cent last week. It stood at 3.41 per­cent a year ago. The rate on 15-year, fixed-rate home loans, pop­u­lar with home­own­ers who are re­fi­nanc­ing their mort­gages, rose to 3.22 per­cent from 3.17 per­cent. A year ago, it was 2.74 per­cent.

Sean Beck­etti, Fred­die Mac’s chief econ­o­mist, said the higher mort­gage rates re­flect higher global in­ter­est rates. The yield on the 10-year Trea­sury note, which in­flu­ences mort­gage rates, has risen to 2.37 per­cent from 2.27 per­cent a week ago.

Still, mort­gage rates re­main his­tor­i­cally low, even though the Fed­eral Re­serve has be­gun to ratchet up short­term in­ter­est rates.

To cal­cu­late av­er­age mort­gage rates, Fred­die Mac, short for the Fed­eral Home Loan Mort­gage Corp., sur­veys lenders across the coun­try 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. One point equals 1 per­cent of the loan amount.

The av­er­age fee for a 30-year mort­gage rose to 0.6 point from 0.5 point last week. The fee on 15-year loans re­mained at 0.5 point.

Rates on ad­justable five-year loans rose to 3.21 per­cent from 3.17 per­cent last week. The fee was un­changed at 0.5 point.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.