Average mortgage rates mostly lower; 30year at 2.93%

WASHINGTON — Mortgage rates were mostly lower this week as the economy continued to show signs of recovery from the pandemic recession and recent bursts of inflation were deemed temporary by federal policymakers.

Mortgage buyer Freddie Mac reported Thursday that the average for the key 30year home loan fell to 2.93% from 2.96% last week. By contrast, the rate stood at 3.13% a year ago.

The rate for a 15year loan, a popular option among homeowners refinancing their mortgages, edged up to 2.24% from 2.23% last week.

The Federal Reserve signaled Wednesday that it may act sooner than previously planned to start dialing back the lowinterest rate policies that have helped spark a swift rebound from the recession but also have coincided with rising inflation. Fed Chairman Jay Powell said the inflation spikes of the past two months will likely prove temporary.

In the latest economic news, the government reported Thursday that the number of Americans seeking unemployment benefits rose last week for the first time since April, to 412,000. Employers added 104,500 new jobs in May as California’s unemployment rate dipped slightly to 7.9% from 8% in April. It’s still one of the highest unemployment rates in the nation, but it is the fourth month in a row that the state has added at least 100,000 new jobs.

California has regained 1.4 million jobs from the depths of April 2020, when a stayathome order had forced many businesses to close.