Average mortgage rates rise; 30-year at 3.14%

WASHINGTON — Average long-term mortgage rate rose this week as inflation pressures, the coronavirus pandemic and some supply shortages linger.

Mortgage buyer Freddie Mac reported Thursday that the average rate for a 30-year mortgage jumped to 3.14% from 3.09% last week. In contrast, the key rate stood at 2.81% this time last year.

The rate for a 15-year loan, a popular option for homeowners refinancing their mortgages, increased to 2.37% from 2.33% last week.

The government reported Thursday that the U.S. economy slowed sharply to a 2% annual growth rate in the JulySeptember period, the weakest quarterly expansion since the recovery from the pandemic recession began last year. Rising COVID-19 cases and supply shortages were cited as factors hampering growth.

The government estimate fell below expectations and would have been even weaker if not for a sharp increase in restocking by businesses, which added whatever supplies they could obtain.

By contrast, consumer spending, which fuels about 70% of overall economic activity, slowed last quarter. Economists remain hopeful for a bounce-back in the current October-December period, with confirmed COVID cases declining, vaccination rates rising and more Americans venturing out to spend money.

The number of Americans applying for unemployment benefits fell to a pandemic low last week, another sign that the job market and economy continue to recover from last year’s coronavirus recession.

Jobless claims dropped by 10,000 to 281,000, lowest since mid-March 2020, the Labor Department said Thursday.