Average US rate on 30-year loan at 4.51 pct.


Average U.S. rates for fixed mortgages barely changed this week, hovering near historically low levels.

Mortgage buyer Freddie Mac said Thursday that the average for the 30-year loan slipped to 4.51 percent from 4.53 percent last week. The average for the 15-year loan edged up to 3.56 percent from 3.55 percent.

Mortgage rates have risen more than a full percentage point since hitting record lows a year ago. The increase was driven by speculation that the Federal Reserve would reduce its $85 billion a month in bond purchases.

Last month, the Fed determined the economy was strong enough to start cutting those monthly purchases by $10 billion. The bond purchases have kept long-term interest rates low.

The rise in mortgage rates has slowed home sales, which have fallen for three straight months.

But overall, 2013 represented the best year for the housing market since the financial crisis. Sales of existing homes should reach 5.1 million for last year, the National Association of Realtors forecasts. That would be up 10 percent from the previous year and the most since 2006. It’s still below the 5.5 million generally associated with healthy housing markets.

Most economists expect 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 between Monday and 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 declined to 0.7 point from 0.8 point. The fee for a 15-year loan slipped to 0.6 point from 0.7 point.

The average rate on a one-year adjustable-rate mortgage was unchanged at 2.56 percent. The fee stayed at 0.5 point.

The average rate on a five-year adjustable mortgage increased to 3.15 percent from 3.05 percent. The fee was unchanged at 0.4 point.


Reader Comments ...


Next Up in Business

Navistar, local leaders push others to buy trucks made in Springfield
Navistar, local leaders push others to buy trucks made in Springfield

Members of the UAW Local 402 and Chamber of Greater Springfield are increasingly working with area businesses as part of a two-year effort to encourage them to buy Navistar products made in Springfield. The chamber and UAW started out more than a year ago with a mailing campaign to more than 600 townships, villages cities and other government entities...
Tips for buying items at local festivals
Tips for buying items at local festivals

Late summer and fall is the prime time for festivals in the Miami Valley. Many of these offer bourbon chicken, lemon shake-ups, Ferris wheels and an overwhelming number of vendors. If you’d like to purchase beautiful handcrafted goods and other items at these events, Better Business Bureau wants you to consider these tips: ...
Quality available at thrift stores and community colleges
Quality available at thrift stores and community colleges

Don’t let your love of fashionable footwear break the bank! Here’s how to get gently used Michael Kors, Casadei and Burberry for outrageously low prices. Next time you need a pair of shoes for a night out on the town, you’d be wise to visit your local thrift store. At a recent check to a metro Atlanta area thrift store, we found some...
Moraine-based wholesaler celebrates growth, new office
Moraine-based wholesaler celebrates growth, new office

Moraine-based Winsupply Inc., one of the largest distributors in the nation, has opened a new Winsupply company in Franklin, Tenn., its fifth new company of 2017. Winsupply of Franklin will serve plumbing contractors in one of the fastest growing markets in the United States, and throughout greater Nashville, the company said Friday. RELATED: ...
Dozens of Joe's Crab Shack restaurants abruptly close
Dozens of Joe's Crab Shack restaurants abruptly close

Dozens of Joe’s Crab Shack locations across the United States abruptly closed without warning amidst its parent company’s bankruptcy proceedings. Calls to a location in Duluth, Georgia, went unanswered Thursday afternoon, and restaurant review site Yelp deemed it closed based on user feedback. The Gwinnett site is also not listed on...
More Stories