Average US rate on 30-year mortgage rises to 4.12 per cent; 15-year loan at 3.26 per cent

WASHINGTON – Average long-term U.S. mortgage rates rose slightly this week but remained near their lows for the year.

Mortgage company Freddie Mac said Thursday the nationwide average for a 30-year loan edged up to 4.12 per cent from 4.10 per cent last week, where it had stayed for three straight weeks.

The average for a 15-year mortgage, a popular choice for people who are refinancing, rose to 3.26 per cent from 3.24 per cent.

At 4.12 per cent, the rate on a 30-year mortgage is down from 4.53 per cent at the start of the year. Rates have fallen even though the Federal Reserve has been trimming its monthly bond purchases, which are intended to keep long-term borrowing rates low. The purchases are set to end next month.

Mortgage rates often follow the yield on the 10-year Treasury note. The 10-year note traded at 2.54 per cent Wednesday, up from 2.41 per cent a week earlier. It was trading at 2.53 per cent Thursday morning. Bond yields rise when bond prices fall.

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 per cent of the loan amount.

The average fee for a 30-year mortgage was unchanged from last week at 0.5 point. The fee for a 15-year mortgage also remained at 0.5 point.

The average rate on a five-year adjustable-rate mortgage rose to 2.99 per cent from 2.97 per cent. The fee was stable at 0.5 point.

For a one-year ARM, the average rate increased to 2.45 per cent from 2.40 per cent. The fee held at 0.4 point.