Average U.S. rates for fixed mortgages
changed little this week.
M
|
ortgage buyer Freddie Mac said Thursday the
average for the 30-year loan declined to 4.39 percent from 4.41 percent last
week. The average for the 15-year loan slipped to 3.44 percent from 3.45
percent.
Mortgage rates have risen about a full
percentage point since hitting record lows roughly a year ago. The increase was
driven by speculation that the Federal Reserve would reduce its $85 billion a
month in bond purchases. The Fed determined last month that the economy was
strong enough to start trimming the purchases, which have kept long-term
interest rates low.
The rise in mortgage rates and higher home
prices slowed sales of existing homes, which have fallen for three straight
months.
But overall, 2013 was the best year for
housing in seven years. The National Association of Realtors reported Thursday
that sales of existing homes edged up slightly in December, helping lift sales
for the year to the highest level since 2006.
Most economists expect home sales and prices
to keep rising this year, but at a slower pace. They forecast sales and prices
will likely rise around 5 percent, down from double-digit gains in 2013.
To calculate average mortgage rates, Freddie
Mac surveys lenders across the country Monday through Wednesday 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 at 0.7 point. The fee for a 15-year loan also remained at 0.7 point.
- The average rate on a one-year adjustable-rate mortgage declined to 2.54 percent from 2.56 percent. The fee was unchanged at 0.5 point.
- The average rate on a five-year adjustable mortgage increased to 3.15 percent from 3.10 percent. The fee was steady at 0.5 point.
Dailyfinance.com
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