“WASHINGTON – Long term US mortgage rates edged up last week as the benchmark 30-year rate bounced back from a seven-month low. Mortgage buyer Freddie Mac said Thursday that the average 30-year, fixed-rate mortgage rose to 3.91% last week from 3.89% the previous week. The rate stood at 3.54% a year ago and averaged a record low 3.65% in 2016.
The rate on the 15-year mortgage rose to 3.18% from 3.16%.
Freddie Mac chief economist Sean Becketti said this week’s higher rates might not last. Freddie Mac surveyed mortgage lenders before the government reported Wednesday that US consumer prices fell in May, causing a drop in the yield on 10-year Treasury notes, which often influences mortgage rates.
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% of the loan amount.
The average fees on 30-year and 15-year mortgages were both unchanged at 0.5 point.”
SOURCE: Paul Wiseman/Associated Press