WASHINGTON (AP) -- The average 30-year U.S. mortgage rate this week remained at a 52-week low of 4.1 percent for the third straight week.
Mortgage company Freddie Mac also said Thursday the average for a 15-year mortgage, a popular choice for people who are refinancing, slipped to 3.24 percent from 3.25 percent.
At its 52-week low of 4.1 percent, the rate on a 30-year mortgage is down from 4.53 percent 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 in October.
The low rates appear to have boosted U.S. home sales.
Also, moderating increases in home prices such as occurred in July should help support sales by making homes more affordable.
Real estate data provider CoreLogic (NYSE: CLGX) reported Tuesday that home prices rose in July but at a slower rate compared with earlier this year.
Greater affordability has helped the housing market recover over the spring and summer, after sales and construction fell earlier this year.
Resales of existing homes rose for a fourth straight month in July to their strongest pace in nine months.
And a measure of signed contracts also increased in July, suggesting that final sales will rise further in coming months.
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 percent of the loan amount.
The average fee for a 30-year mortgage was 0.5 point, unchanged from last week. The fee for a 15-year mortgage fell to 0.5 point from 0.6 point.
The average rate on a five-year adjustable-rate mortgage was stable at 2.97 percent. The fee stayed at 0.5 point.
For a one-year ARM, the average rate edged up to 2.40 percent from 2.39 percent. The fee dipped to 0.4 point from 0.5 point.
Comments are moderated by SDDT, in accordance with the SDDT Comment Policy, and may not appear on this commentary until they have been reviewed and deemed appropriate for posting. Also, due to the volume of comments we receive, not all comments will be posted.
SDDT Comment Policy: SDDT encourages you to add a comment to this discussion. You may not post any unlawful, threatening, defamatory, obscene, pornographic or other material that would violate the law. All comments should be relevant to the topic and remain respectful of other authors and commenters. You are solely responsible for your own comments, the consequences of posting those comments, and the consequences of any reliance by you on the comments of others. By submitting your comment, you hereby give SDDT the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying and other information you provide via all forms of media now known or hereafter devised, worldwide, in perpetuity. SDDT Privacy Statement.
All contents herein copyright San Diego Source ® 1994-2016