Freddie Mac: Average mortgage rates rise; 30-year fixed at 4.33%
Fixed mortgage rates crept higher again early this week, with Freddie Mac reporting that lenders were offering 30-year home loans to solid borrowers at an average 4.33%, up from 4.28% last week.
The 30-year fixed rate had declined for five weeks before reversing course last week. The average rate for a 15-year fixed mortgage, which held steady last week at 3.33%, edged up to 3.35% in the latest Freddie Mac survey, released Thursday.
The start rates on adjustable mortgages were slightly higher as well, said McLean, Va.-based Freddie Mac, the giant government-backed home-finance company.
The yield on the 10-year Treasury note, a barometer for mortgage rates, edged higher on Wednesday and again early Thursday.
Freddie Mac chief economist Frank Nothaft said the 10-year Treasury yield was moving higher because the Federal Reserve appeared committed to following through on its decision to cut back on bond purchases, a program designed to keep long-term interest rates low.
The Freddie Mac survey asks lenders about the terms they are offering to highly credit-worthy borrowers who would pay less than 1% in fees and discount points to obtain the loans. Borrowers can reduce mortgage rates by paying additional points.
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