US rate on 30-year mortgages rises to 3.59 pct. - Houston weather, traffic, news | FOX 26 | MyFoxHouston

US rate on 30-year mortgages rises to 3.59 pct.

Posted: Updated:

WASHINGTON (AP) -- Average rates on fixed mortgage rose for the third straight week, hitting their highest levels since mid-March. Still, mortgage rates remained close to historic lows, a trend that should help sustain the housing recovery.

Mortgage buyer Freddie Mac said Thursday that the average rate for the 30-year loan increased to 3.59 percent this week. That's up from 3.51 percent last week and above the rate of 3.31 percent reached in November, the lowest on records dating to 1971.

The average on the 15-year loan jumped to 2.77 percent. That's up from 2.69 percent last week. The record low of 2.56 percent was hit on May 2.

Cheaper mortgages are a key reason home sales have increased this year.

In April, sales of previously occupied homes rose at the fastest pace in three and a half years, the National Association of Realtors reported Wednesday. And sales of newly built homes jumped to the second-highest rate since July 2008.

More demand, along with a tight supply of homes for sale, has helped boost home prices. It has also encouraged builders to break ground on more homes.

Mortgage rates rose sharply this week because they tend to track the yield on the 10-year Treasury note.

The yield rose above 2 percent Wednesday for the first time since March 14 and was at 2.02 percent Thursday. Investors began selling government bonds Wednesday after minutes of the Federal Reserve's last meeting showed several policymakers favored slowing the Fed's bond purchases, perhaps as early as this summer.

The Fed is buying $85 billion a month in Treasury and mortgage bonds, which has pushed down long-term interest rates. Once it slows the bond purchases, interest rates are likely to tick up. That would decrease the value of bonds with lower yields.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through 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 30-year mortgages was unchanged at 0.7 point last week. The fee for 15-year loans also was steady at 0.7 point.

The average rate on a one-year adjustable-rate mortgage held at 2.55 percent. The fee for one-year adjustable-rate loans was unchanged at 0.4 point.

The average rate on a five-year adjustable-rate mortgage edged up to 2.63 percent from 2.62 percent. The fee was steady at 0.5.

  • Your MoneyMore>>

  • The future of technology

    The future of technology

    Wednesday, July 23 2014 7:01 PM EDT2014-07-23 23:01:39 GMT
    For New Yorkers fed up with the nightmare otherwise known as traffic, a futuristic answer may be closer than you think: driverless cars.Gray Scott is a futurist with seriouswonder.com. He and his colleagues track the future of technology. He says driverless cars will be a reality.After launching Google Glass just months ago, Google is about to take vision innovation a step further.
    For New Yorkers fed up with the nightmare otherwise known as traffic, a futuristic answer may be closer than you think: driverless cars.Gray Scott is a futurist with seriouswonder.com. He and his colleagues track the future of technology. He says driverless cars will be a reality.After launching Google Glass just months ago, Google is about to take vision innovation a step further.
  • Puerto Rico's economic woes worry bondholders

    Puerto Rico's economic woes worry bondholders

    Wednesday, July 23 2014 6:41 PM EDT2014-07-23 22:41:09 GMT
    Puerto Rico just balanced its first budget in more than a decade. Sales taxes are up. But optimism remains low when it comes to those making financial investments in the commonwealth. Maglan Capital hedge fund managers David Tawil and Steven Azarbad seem to think Puerto Rico itself is not in any imminent financial danger, just its major utility companies. So why is this news to you? The simple answer: Puerto Rico is a major player when it comes to what Wall Street investors are interested in.
    Puerto Rico just balanced its first budget in more than a decade. Sales taxes are up. But optimism remains low when it comes to those making financial investments in the commonwealth. Maglan Capital hedge fund managers David Tawil and Steven Azarbad seem to think Puerto Rico itself is not in any imminent financial danger, just its major utility companies. So why is this news to you? The simple answer: Puerto Rico is a major player when it comes to what Wall Street investors are interested in.
  • Some StubHub accounts breached

    Some StubHub accounts breached

    Wednesday, July 23 2014 4:34 PM EDT2014-07-23 20:34:20 GMT
    Six people were indicted Wednesday in an international ring that managed to take over more than 1,000 StubHub users' accounts and fraudulently buy tickets to such prime events as Jay-Z and Elton John concerts, a New York Yankees-Boston Red Sox game and Broadway shows like "The Book of Mormon," the Manhattan district attorney said. Manhattan District Attorney Cyrus R. Vance Jr. said the thieves would then resell the tickets and split up the proceeds.
    Six people were indicted Wednesday in an international ring that managed to take over more than 1,000 StubHub users' accounts and fraudulently buy tickets to such prime events as Jay-Z and Elton John concerts, a New York Yankees-Boston Red Sox game and Broadway shows like "The Book of Mormon," the Manhattan district attorney said. Manhattan District Attorney Cyrus R. Vance Jr. said the thieves would then resell the tickets and split up the proceeds.
Powered by WorldNow

KRIV FOX 26
4261 Southwest Freeway
Houston, TX 77027

Phone: (713) 479-2801
Fax: (713) 479-2859

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices