(Source: Fox Business) Long-term U.S. mortgage rates declined this week, in a quiet pause after weeks of market anxiety over rising interest rates.
Mortgage buyer Freddie Mac said Thursday the rate on 30-year, fixed-rate mortgages eased to an average 4.83 percent this week from 4.86 percent last week. A year ago, it stood at 3.94 percent.
The average rate on 15-year, fixed-rate loans slipped to 4.23 percent this week from 4.29 percent last week.
Anxiety over rising interest rates, which result from strength in the economy, has buffeted financial markets in recent weeks and spilled over into the housing market.
Despite the higher borrowing costs, “the monthly mortgage payment remains affordable,” Freddie Mac chief economist Sam Khater said. For many buyers, he said, the persistent lack of available properties for first-time homebuyers is a bigger hurdle than higher mortgage rates because choices are limited. And the shortage of available homes has pushed prices higher.
The average fee on 30-year fixed-rate mortgages was unchanged from last week at 0.5 point. The fee on 15-year mortgages rose to 0.5 point from 0.4 point.
The average rate for five-year adjustable-rate mortgages dropped to 4.04 percent from 4.14 percent last week. The fee held steady at 0.3 point.