WASHINGTON—U.S. long-term mortgage rates rose this week. Still, rates remain at historically low levels as a lure to prospective homebuyers.
Mortgage buyer Freddie Mac says the average rate for a 30-year fixed-rate mortgage increased to 3.73 percent from 3.68 percent last week. The benchmark rate stood at 4.63 percent a year ago. The average rate on a 15-year mortgage rose to 3.19 percent from 3.14 percent.
The average rate for a five-year adjustable-rate mortgage bucked the trend at 3.36 percent, down from 3.39 percent last week.
On Wednesday, the Federal Reserve left its key short-term rate in a low range of 1.5 percent to 1.75 percent after having reduced it three times this year. With the Feds key rate likely to stay where it is, consumers interested in buying a home or car should continue to enjoy low borrowing costs.
“With the Federal Reserve policy on cruise control and the economy continuing to grow at a steady pace, mortgage rates have stabilized as the market searches for direction,” Freddie Mac Chief Economist Sam Khater said.
Reflecting the attractive rates, applications for new mortgages and refinancing increased 3.8 percent in the week ended Dec. 6 from a week earlier, according to the Mortgage Bankers Association.
Freddie Mac surveys lenders nationwide between Monday and Wednesday each wRead More – Source