Average 30-Year Mortgage Rate Up

The average U.S. rate on a 30-year fixed mortgage increased from 4.23 percent to 4.28 percent. Unfortunately, according to this article published in the Fort Myers News-Press, it still sits with historically low levels after declining during the five previous weeks.

Mortgage buyer Freddie Mac said on Thursday that the average for the 15-year loan was still at 3.33 percent.

But unfortunately, mortgage rates haven’t really budged, only rising about a full percentage point since hitting record lows a year ago. And the increase was driven by speculation that the Federal Reserve would reduce its $85 billion a month bond purchases.

Real estate data provider CoreLogic reported last week that U.S. home prices slipped from November to December. And the year-over-year increase lost its momentum, which was likely a result of weaker sales at the end of 2013.

And the number of Americans who have signed contracts to buy homes has also tumbled down to its lowest level in more than two years.

But most economists expect home sales and prices to keep rising this year, but at a slower pace.

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 unchanged at 0.7 point. The fee for a 15-year loan also remained at 0.7 point.

The average rate on a one-year adjustable-rate mortgage rose to 2.55 percent from 2.51 percent. The average fee declined to 0.4 point from 0.5 point.

The average rate on a five-year adjustable mortgage fell to 3.05 percent from 3.08 percent. The fee held at 0.5 point.