|
 Mortgage buyer Freddie Mac said Thursday that the average rate on
the 30-year loan fell to 4.22 percent from to 4.35 percent last
week. The average on the 15-year fixed mortgage dipped to 3.27
percent from 3.35 percent.
Rates had spiked over the summer and reached a two-year high in July
on speculation that the Federal Reserve would slow its bond
purchases later this year. But the Fed held off in September and now
appears poised to wait at least a few more months to see how the
economy performs. The bond purchases are intended to keep long-term
interest rates low.
Mortgage rates tend to follow the yield on the 10-year Treasury
note. They have stabilized since September and remain low by
historical standards.
Still, mortgage rates are nearly a full percentage point higher than
in the spring. The uptick has contributed to a slowdown in home
sales. The National Association of Realtors said sales of existing
homes fell 3.2 percent in October, the second straight monthly
decline.
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.
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The average fee for a 30-year mortgage was unchanged at 0.7 point.
The fee for a 15-year loan also was steady at 0.7 point.
The average rate on a one-year adjustable-rate mortgage held at 2.61
percent. The fee was unchanged at 0.4 point.
The average rate on a five-year adjustable mortgage fell to 2.95
percent from 3.01 percent. The fee rose to 0.5 point from 0.4 point.
[Associated
Press]
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