WASHINGTON (AP) – US long-term mortgage rates rose this week, but remained at historically low levels.
Credit buyer Freddie Mac said Thursday that the interest rate on the 30-year fixed rate rose to 3.56% from 3.49% last week. Average interest rates on the reference loan have remained below 3.6% for four straight weeks – the first time this has happened since the fourth quarter of 2016.
One year ago, the 30-year interest rate was 4.6%.
The average for 15-year fixed-rate loans rose to 3.09% from 3% last week.
Mortgage rates fell sharply throughout the summer as a receding global economy and tensions from the US-China trade war created interest rates on government bonds to tumble. The return on government bonds, especially the 1
Trading problems have seemed to ease in recent days, and the mood has become brighter in the global stock markets. Interest rates on government bonds have ticked up. China said on Wednesday it would exempt U.S. industrial fat and other imports from tariff increases, though it kept penalties for soybeans and other major US exports ahead of negotiations next month.
As a gesture of "goodwill," President Donald Trump said on Twitter that the United States agreed to a two-week delay in a planned increase in tariffs for some Chinese imports. The moves may indicate that both sides are content with an extended conflict, even as they prepare for talks in Washington aimed at ending the dispute that threatens global economic growth.
Investors still expect the Federal Reserve to cut interest rates in its policy development meeting next week in a new offer from the central bank to help sustain US economic growth. The Fed lowered its benchmark interest rate in July by a quarter, the first cut in a decade.
Freddie Mac charts lenders across the country between Monday and Wednesday each week to compile mortgage rates.
The average does not include the additional fee, known as points, that most borrowers must pay to get the lowest rates.
The average fee for a 30-year fixed rate with a fixed rate was unchanged this week at 0.5 points.
The average fee for 30-year fixed rate mortgages on the 15-year mortgage was 0.5 points from 0.6 points.
The average interest rate for five-year adjustable-rate loans rose to 3.36% from 3.30% last week. The fee dropped to 0.3 points from 0.4 points.
This story has been updated to correct that the Fed lowered, not raised, the reference rate for the first time in ten years in July.