U.S. longterm mortgage rates fall; 30year loan at 3.73%

WASHINGTON — U.S. longterm mortgage rates fell last week. It was the seventh decline in the past nine weeks for the key 30year, fixedrate loan, which reached its lowest level since November 2016.

Mortgage buyer Freddie Mac said Thursday the average rate on the benchmark 30year mortgage fell to 3.73% from 3.84% last week. By contrast, a year ago the rate stood at 4.55%.

The average rate for 15year, fixedrate home loans slipped this week to 3.16% from 3.25%.

The historically low levels marked by mortgage rates in this spring's homebuying season have brought a surge in interest by prospective buyers and homeowners looking to refinance. Total mortgage applications rose 1.3% in the week ended June 21 from a week earlier, while refinance applications increased 3%, according to the Mortgage Bankers Association. More Americans signed contracts to buy homes last month compared with April, the National Association of Realtors reported Thursday, a sign that buyers may be ready to take advantage of low mortgage rates and stabilizing home prices. Even with the 30year average mortgage rate below 4%, home sales slowed in the first five months of the year.

Freddie Mac surveys lenders across the country between Monday and Wednesday each week to compile its mortgage rate figures.

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

The average fee on 30year fixedrate mortgages was unchanged this week at 0.5 point.

The average fee for the 15year mortgage rose to 0.5 point from 0.4 point.

The average rate for fiveyear adjustablerate mortgages fell to 3.39% from 3.48% last week. The fee held steady at 0.4 point.