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WASHINGTON (AP) – US long-term mortgage rates have risen this week but have remained at historically low levels.
Mortgage buyer Freddie Mac said Thursday that the 30-year fixed-rate mortgage rate rose from 3.49 percent last week to 3.56 percent. Average benchmark lending rates remained below 3.6% for four consecutive weeks – for the first time since the fourth quarter of 2016.
A year ago, the 30-year rate was 4.6%.
The average rate of 15-year fixed rate home loans rose from 3% to 3.09%, compared to 3% last week.
Mortgage rates fell sharply over the summer, as a result of the slowdown in the global economy and tensions resulting from the US-China trade war, which led to falling interest rates. of interest on government bonds. Government bond yields, particularly 10-year Treasury bills, affect long-term mortgage rates.
Trade concerns have appeared to have eased in recent days and confidence has weakened in the global stock markets. Interest rates on government bonds have increased. China announced on Wednesday that it would exempt tariff increases from US industrial grease and some other imports, while retaining penalties on soybeans and other major US exports ahead of next month's negotiations.
In a gesture of "good will," President Donald Trump said on Twitter that the United States had agreed to delay by two weeks the planned increase in tariffs on certain imports from China. These measures could indicate that both parties are preparing for protracted conflict as they prepare for talks in Washington to end the conflict that threatens global economic growth.
Investors continue to expect the Federal Reserve to cut interest rates at a meeting of its political decision next week, as part of a new offer from the central bank to maintain US economic growth . The Fed lowered its key rate by a quarter of a point in July, its first decline in a decade.
Freddie Mac conducts a weekly survey of lenders across the country to establish his mortgage rate numbers.
The average does not include the additional fees, called points, that most borrowers must pay to get the lowest rates.
The average commission on 30-year fixed rate mortgages remained unchanged this week at 0.5 point.
Average mortgage fees over 15 years went from 0.6 point to 0.5 point.
The average five-year adjustable rate mortgage rate increased from 3.30% to 3.36% last week. Costs went from 0.4 point to 0.3 point.
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This story has been updated to correct the fact that the Fed has lowered and not raised its benchmark interest rate for the first time in ten years in July.
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