MORTGAGE RATES FALL TO 10-MONTH LOW; 30-YEAR LOAN AT 4.41%

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W A S HI N G T O N term mortgage rates fell this week to a 10-month low, spurring on potential homebuyers for the upcoming season.

Mortgage buyer Freddie Mac said Thursday the average rate on the benchmark 30-year, fixed-rate mortgage eased to 4.41 percent from 4.46 percent last week. Despite the declines in recent weeks, home borrowing rates are above last year’s levels. The key 30-year rate averaged 4.32 percent a year ago.

The average rate this week for 15-year, fixed-rate loans declined to 3.84 percent from 3.89 percent.

Applications for U.S. jobless aid fell to low level of 234,000.

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Americans seeking unemployment benefits dropped sharply last week, a sign that layoffs are rare and the job market is strong.

The Labor Department said weekly applications for jobless aid fell 19,000 to 234,000, a low level that indicates businesses are holding onto their employees. Applications are a proxy for layoffs. The four-week average, a less volatile figure, rose to 224,750.

Businesses are hiring at a healthy pace that has surprised economists, who expected job gains would slow as the number of unemployed dwindled. The jobless rate stood at just 4 percent last month, when employers added 304,000 jobs, the most in nearly a year.

With labor scarce, many companies are reluctant to let workers go, likely because they fear it will be

» Consumer borrowing rose at a slower pace in December, but that still pushed total borrowing to a new record above $4 trillion for the first time.

The Federal Reserve said Thursday that borrowing increased by $16.6 billion in December after a $22.4 billion advance in November. The December increase nudged the total up to a record $4.01 trillion. Borrowing had crossed the $3 trillion mark back in June 2013.

Borrowing in the category that includes credit cards rose by $1.7 billion in December, down from a $4.8 billion November increase. Borrowing in the category that covers auto loans and student loans rose by $14.8 billion following a larger $17.6 billion gain the previous month.

BB&T, SunTrust will merge to make nation’s sixth-largest bank.

BB&T Corp. and SunTrust banks will merge in a $66 billion all-stock deal that will create the nation’s sixth-largest bank in terms of assets and deposits, the two companies announced Thursday.

The merger reflects the growing consolidation in the banking industry. The two banks, which have a significant Mid-Atlantic presence, cited the need to “accelerate investment in transformative technology” to compete with rivals with more resources.

The new company will have $442 billion in assets, $301 billion in loans and $324 billion in deposits serving more than 10 million U.S. households, according to the announcement by the banks.

BB&T Corp., based in Winston-Salem, as of September had 1,958 offices in 15 states and Washington. — Denver Post wire services