Real Estate News

Average US rate on 30-year mortgages rises to 3.95 percent

A “sold” sign in a new home development in Nashville, Tenn. Mortgage buyer Freddie Mac said Thursday that average long-term U.S. mortgage rates edged higher during the week following three straight weeks of declines, amid expectations that the Federal Reserve will raise its key short-term interest rate next week.
A “sold” sign in a new home development in Nashville, Tenn. Mortgage buyer Freddie Mac said Thursday that average long-term U.S. mortgage rates edged higher during the week following three straight weeks of declines, amid expectations that the Federal Reserve will raise its key short-term interest rate next week. Associated Press file, 2015

Average long-term U.S. mortgage rates edged higher this week following three straight weeks of declines, amid expectations that the Federal Reserve will raise its key short-term interest rate next week.

Mortgage buyer Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage rose to 3.95 percent from 3.93 percent a week earlier. The average rate on 15-year fixed-rate mortgages increased to 3.19 percent from 3.16 percent.

The key 30-year rate was slightly above its level of a year ago, 3.93 percent. The rate has increased significantly overall since the end of October, when it stood at 3.76 percent.

An interest rate hike by the Fed, expected to come at its policymaking meeting next Tuesday and Wednesday, would be the central bank’s first in nearly a decade. The rate has been held at a record low near zero for the past seven years.

The expectations of a Fed increase were bolstered by the release Friday of government data showing that the U.S. economy added 211,000 jobs in November, more than investors had expected.

The yield on the 10-year Treasury bond, which mortgage rates have been tracking, rose to 2.21 percent Wednesday from 2.18 percent a week earlier. Yields on the U.S. government bonds move in the opposite direction of the bonds’ prices. The yield ticked up to 2.22 percent Thursday morning.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage was unchanged from last week at 0.6 point. The fee for a 15-year loan remained at 0.5 point.

The average rate on five-year adjustable-rate mortgages rose to 3.03 percent from 2.99 percent; the fee was unchanged at 0.5 point. The average rate on one-year ARMs increased to 2.64 percent from 2.61 percent; the fee declined to 0.2 point from 0.3 point.

Local mortgage rates

Rates offered by banks and thrifts Wednesday.

Loans: Rates are shown as annual percentages based on 80 percent financing or 20 percent down.

Mortgages: 30-year fixed and 15-year fixed.

INSTITUTION

30-YEAR FIXED

15-YEAR FIXED

Chase

4.010

3.343

Sound CU

3.915

3.219

Tapco CU

4.312

3.699

Verity CU

4.264

3.489

Washington State ECU

4.130

3.476

State average

4.126

3.445

Change

-0.052

-0.028

Source: Informa Research Services

  Comments