Skip to main content
Advertising

Originally published February 20, 2014 at 10:42 AM | Page modified February 20, 2014 at 7:16 PM

  • Share:
           
  • Comments (1)
  • Print

Average 30-year US mortgage rate up to 4.33 pct

Average U.S. rates on fixed mortgages rose this week but remained near historically low levels.


Most Popular Comments
Hide / Show comments
c'mon mortgage rates rise! c'mon house prices drop! MORE

advertising

WASHINGTON —

Average U.S. rates on fixed mortgages rose this week but remained near historically low levels.

Mortgage buyer Freddie Mac said Thursday the average rate for the 30-year loan increased to 4.33 percent from 4.28 percent last week. The average for the 15-year mortgage edged up to 3.35 percent from 3.33 percent.

Mortgage rates have risen about a full percentage point since hitting record lows roughly a year ago. The increase was driven by speculation that the Federal Reserve would reduce its $85 billion-a-month bond purchases. Deeming the economy to be gaining strength, the Fed proceeded last month with planned reductions of its bond purchases, which have helped keep long-term interest rates low.

The housing market is expected to deliver another year of solid gains, helped by an improving economy. Most economists expect home sales and prices to keep rising this year, but at a slower pace. They forecast that both will likely rise by about 5 percent, down from double-digit gains in 2013.

Government data released Wednesday showed that U.S. home construction fell in January for a second straight month, but the weakness in both months reflected severe winter weather in many parts of the country.

In a similar vein, U.S. homebuilders' confidence in the housing market declined sharply this month as the rough weather battering much of the nation keeps many would-be buyers at home, according to the National Association of Home Builders/Wells Fargo builder sentiment index issued Tuesday.

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 was unchanged at 0.7 point. The fee for a 15-year loan also remained at 0.7 point.

The average rate on a one-year adjustable-rate mortgage rose to 2.57 percent from 2.55 percent. The average fee declined to 0.3 point from 0.4 point.

The average rate on a five-year adjustable mortgage increased to 3.08 percent from 3.05 percent. The fee held at 0.5 point.



News where, when and how you want it

Email Icon

Hurry! Last two weeks to save 15%.

Hurry! Last two weeks to save 15%.

Reserve your copy of "The Seattle Sketcher," the long-awaited book by staff artist Gabriel Campanario, for the special price of just $29.95.

Advertising

Advertising


Advertising
The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►