Homebuyers Get a Break as Mortgage Rates Edge Down

FILE - In this Tuesday, July 30, 2013, file photo, A home is seen for sale Tuesday, July 30, 2013 in Gilbert, Ariz.  Freddie Mac reports quarterly earnings on Tuesday, Aug. 7, 2013. (AP Photo/Matt York)
Matt York/AP
By MARCY GORDON

WASHINGTON -- Average U.S. rates on fixed mortgages barely changed this week, giving prospective homebuyers time to lock in relatively low rates.

Mortgage buyer Freddie Mac said Thursday that the average on the 30-year loan edged up to 4.40 percent from 4.39 percent last week. The rate is a full percentage point higher than in early May, when rates neared record lows. But rates remain low by historical standards.

The average on the 15-year fixed loan was unchanged at 3.43 percent.

Mortgage rates spiked in June after Chairman Ben Bernanke indicated the Federal Reserve could slow its bond purchases later this year. The bond purchases have kept long-term interest rates low, encouraging more borrowing and spending.


Despite the recent rate increases, mortgages remain a bargain for those who can qualify. Low rates have boosted home sales and prices, contributing to a housing recovery that has helped drive economic growth this year.

Greater demand, along with a tight supply of homes for sale, has pushed up home prices. It also has led to more home construction, which has created more jobs.

Mortgage rates tend to follow the yield on the 10-year Treasury note, which also had jumped recently on speculation that the Fed could slow its bond-buying stimulus. The rate on the 10-year note fell to 2.60 percent Wednesday from 2.64 percent late Tuesday.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on 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 held steady at 0.7 point.
  • The average rate on a one-year adjustable-rate mortgage declined to 2.62 percent from 2.64 percent. The fee slipped to 0.3 point from 0.4 point.
  • The average rate on a five-year adjustable mortgage edged up to 3.19 percent from 3.18 percent. The fee declined to 0.5 point from 0.6.


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annawillim

The interest rates and fees are all determined based upon home value and what loan you decide to go with.

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December 09 2013 at 1:18 PM Report abuse rate up rate down Reply
adaystar

Nothing is free

September 03 2013 at 11:39 AM Report abuse rate up rate down Reply
The Paterfamilia

This is a joke? Like the last article regarding a continued Recovery? Yes for Wall Street Venture Capitalists, not Families... In 2005, when the Housing Bubble Popped what was the Seasonally Adjusted Index... 126.9 or 127? Big headlines all over about the Home Sales index only down .4% froa a 6 Year High!!! How misleading and this rant mentions a Real Estate Recovery? Let me get my fingers out... Let's see that's, 126.9... Minus 110.9... WOW!!! What was those greedy Banks thinking raising their rates a year before the Fed Chair even starts thinking of TAPERING, which would take how many months before the Prime Rate to the Banks MIGHT start increasing? (FROM ZERO?) This idea that the Fed is on our side while allowing banks more windfalls right in middle of the Summer selling season? Right all of the evil Home owners are pricing themselves out of th market... Not the greedy banksters who actually raised rates "Speculating" what? That their free lunch program might cost them a few extra cents from the RECORD PROFIT MARGINS?

I know... Silly me!!! As if it was the Banks fault that the Housing crisis occurred... I'm SOOOO... SORRY!!! I'm acting as if, it was the BANKS that had packaged a huge amount of WORTHLESS LOANS and pawned them off and thwarted Millions of Hard Working Americans Dreams of Retirements!!! Home Values dropped 30 to 40% because of crap just like what these Bankers are doing here again while this article fails to say homes are still 16% under water if you paid cash for it then compared to now... That's why the lists are so low, because your not truthfully reflecting the facts... Banks have made home buying a rip off...

Yes Mr. Fed Chair, FLAIL YOUR ARMS AND ANNOUNCE MORE PASSING THOUGHTS AT THE EXPENSE OF MILLIONS OF EARTHS FUTURE HUMANITY!!! We can't have our Home Owners visioning any prospective Pride of Ownership of their own in a Capitalist Economy like here in AMERICA!!! Equity should be properly SKIMMED at the Wall Street Level so Humanity continues to suffer in their proper Class of the well Exploited Masses... BULHA, HA, HA, Hah!!! ;>D

Your Article is not above this Spew or at least attempted to filter out the PUKE... I guess no one sees it, the Fed acts as a Inside Trade Informant for the whole world to see!!! I hope this is what Obama is talking about when he says he wants a Chair for "We The People". This guy is a Insider Thug who has played a huge role in keeping the Corrupt Wall Street Practices rolling along as if nothing happened...

Just like this NSA thing, Verizon received the "SECRET COURTS" Order just the other day to hand over ALL RECORDS again, as if we are ignorant... Are not the Votes counted on the very same computers they Hack Daily? And Carter spends all his life in other countries legitimatizing Elections... This Brain wash to encourage people to go back to Borrowing from Wall Street Loan Sharks that only want to put them into a life of Debt Bondage is criminal!!! Drop the rates all the way back down.

August 09 2013 at 11:28 AM Report abuse rate up rate down Reply