Sunday, October 18, 2015

Average rate on 30-year mortgage rises to 3.82%

WASHINGTON — Average long-term U.S. mortgage rates rose slightly this week yet remained below 4% for a 12th straight week.
Mortgage financing giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage increased to 3.82% from 3.76% a week earlier. The rate on 15-year fixed-rate mortgages rose to 3.03% from 2.99%.
Despite the increase, rates remained well below last year's levels, providing an inducement for potential homebuyers.
A year ago, the average 30-year mortgage rate was 3.97%, while the rate for 15-year loans was 3.18%.
In recent days, two influential members of the Federal Reserve's policymaking body spoke in favor of postponing an increase in its key short-term interest rate. The Fed has been expected to raise the benchmark rate later this year for the first time in nearly 10 years.
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% of the loan amount.
The average fee for a 30-year mortgage held steady from last week at 0.6 point. The fee for a 15-year loan also remained at 0.6 point.
The average rate on five-year adjustable-rate mortgages was unchanged at 2.88%; the fee remained at 0.4 point. The average rate on one-year ARMs declined to 2.54% from 2.55%; the fee was steady at 0.2 point.

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