Average U.S. 30-Year Mortgage Rises to 4.48%

Mortgage Rates
Matt York/AP
WASHINGTON -- Average U.S. rates for fixed mortgages crept higher this week but remained low by historical standards.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan increased to 4.48 percent from 4.47 percent last week. The average on the 15-year fixed loan rose to 3.52 percent from 3.51 percent.

Mortgage rates peaked at 4.6 percent in August on expectations that the Federal Reserve would reduce its $85 billion-a-month in bond purchases. Those purchases push mortgage and other long-term rates lower and encourage borrowing and spending. On Dec. 18, the Fed finally decided the economy was strong enough to allow it to reduce the monthly purchases by $10 billion.

Mortgage rates are sharply higher than they were a year ago when the 30-year fixed rate was 3.35 percent and the 15-year was 2.65 percent.

The Commerce Department reported Tuesday that new-home sales fell 2.1 percent in November to a seasonally adjusted 464,000.
But stronger figures for the previous three months suggested that housing may be regaining strength after a summer lull.

The National Association of Realtors said last week that the number of people who bought existing homes in November fell for a third straight month. Higher rates and the lingering effects of the partial government shutdown in October may have deterred some sales.

Still, the government said builders broke ground on homes at a seasonally adjusted annual rate of 1.09 million homes and apartments in November. That was the fastest pace since February 2008 and was 23 percent higher than in October.

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 0.7 point. The fee for a 15-year loan was 0.7 point.
  • The average rate on a one-year adjustable-rate mortgage slipped to 2.56 percent from 2.57 percent last week. The fee was 0.5 point.
  • The average rate on a five-year adjustable mortgage rose to 3 percent from 2.96 percent. The fee was 0.4 point.

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Big deal! Interest rates were loered so that those people that should have never been able to purchase a home were permitted to. Nothing down and the rest when you catch me. These people were nothing but glorified renters that stuck the taxpayers with a bill that should have never happened. Back in the day, most folks had to have 20% down to get a mortgage and they thought twice about walking away from their obligations. What did these people have to lose with nothing down and literally were nothing more than glorified renters. You also had to have a good credit score to ven approach a mortgage lender, but those that got mortgages, lied and had real estate agents state that a property was worth more than it truly was, so they got the mortgage. Nice to know the taxpayers bailed out the banks and the deadbeats, all on the backs of honest people that played by the rules. So! Big deal, interest rates rose to a lousy 4.47%. Normal rates were 6 to 6 1/2 percent and savers got 5 1/2 percent on savings and now they get maybe if your lucky, 0.5% at best. Screwed the savers to, didn\'t they?

December 27 2013 at 1:30 AM Report abuse rate up rate down Reply