Longterm mortgage rates rise; 30year average at 2.97%

WASHINGTON — U.S. longterm mortgage rates rose this week but remain near historic lows as the pandemichobbled economy strains toward recovery with more Americans getting vaccinated against the coronavirus.

Mortgage buyer Freddie Mac reported Thursday that the average rate on the benchmark 30year fixedrate home loan increased to 2.97% from 2.81% last week. By contrast, the benchmark rate stood at 3.45% a year ago.

The average rate on 15year fixedrate loans, popular among those seeking to refinance their mortgages, rose to 2.34% from 2.21% last week.

While economists expect modest increases in homeloan rates this year, they likely will remain low while the Federal Reserve keeps interest rates near zero until the economy recovers.

The recordlow lending rates have helped push buyers into the housing market. The government reported Wednesday that demand for new homes surged 4.3% in January, confirming that the housing market remains one of the stronger sectors of the U.S. economy. But the lack of supply of homes, which was pushing up prices even before the pandemic struck last March, has left many prospective buyers emptyhanded.

The number of Americans applying for unemployment aid fell last week in a sign that layoffs may have eased, though applications for benefits remain at a historically high level.

John Bazemore / Associated Press Longterm mortgage rates rose this week but still remain near historic lows as the economy trends toward recovery.