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AP: 4d34ceb9-3de6-4299-b491-fd7bbf025853
Average U.S. rates on fixed mortgages ticked up from record lows last week. Cheaper mortgages are fueling a modest housing recovery that could help the broader economy. (AP Photo)

US rate on 30-year mortgage rises to 3.98 pct.

June 13, 2013 @ 7:28 am

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WASHINGTON (AP) - Fixed U.S. mortgage rates rose for the sixth straight week, putting the average rate on the 30-year loan just shy of 4 percent.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan increased to 3.98 percent. That's up from 3.91 percent last week and the highest since April 2012. The average rate was last at 4 percent or higher in March 2012.

The rate on the 15-year loan advanced to 3.10 percent from 3.03 percent. That's also the highest since April 2012.

Concerns that the Federal Reserve will scale back its bond purchases have pushed rates higher. Still, mortgage rates remain low by historical standards.

Cheap mortgages have helped sustain a housing recovery that began last year, encouraging more Americans to buy homes or refinance existing loans.

Mortgage rates are rising because they tend to follow the yield on the 10-year Treasury note. The yield on the 10-year note climbed as high as 2.29 percent this week from a low of 1.63 percent last month. It has since declined to 2.20 percent in early trading Thursday.

The Fed's $85-billion-a-month in bond purchases have pushed down long-term interest rates. As speculation has grown that the Fed will slow those purchases, investors have driven rates up. That has decreased the value of bonds with lower yields.

Fed policymakers hold a two-day meeting next week that will be closely watched for signals that the Fed may soon slow the bond purchases.

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. 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 2.58 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 rose to 2.79 percent from 2.74 percent. The fee edged up to 0.6 point from 0.5.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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Comments (16)


  • Add A Comment

  • mudslngr1 wrote...
    Good thing
    September 12, 2011 10:37 am
    obumers porkulus package gave the banks hundreds of billions of dollars to not loan and keep for themselves. That sure helped the economy huh?
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Basso wrote...
    LOL
    October 1, 2011 9:21 am
    Except you can't refinance. What does it really matter what it is at. We are still getting screwed by the banks and the fed who refuse to refinance those who can afford to keep their upside down loans. refinance the darn loans, it will put $$ back into the hands of those who would spend it. Get off your arses and stimulate the economy. This managed slow economy by the feds is benefitting someone.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • hnuh wrote...
    The biggest
    October 6, 2011 7:30 am
    problem with an economy based on individual consumption and government expenditures, particularly of borrowed money, is that when demand lags it is almost impossible to significantly stimulate economic activity. In an economy based on production with sound government spending policies Keynesian stimulus could be effective. Even paying people to borrow money can't work. It's all a shell game without consumption, and the only way to stimulate consumption without increased production is to throw free money at people. People have zero respect for free money, ask a welfare bum. We're stuck now. Is this the fundamental change 0bama promised?
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Keitho wrote...
    No refinancing?
    November 27, 2011 6:12 am
    Then why have I been appraising 2+ houses a day, 5 days a week for over a year now? This is one of the busiest years I have seen in the past 27.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Truth Hurts wrote...
    BECU, no fee 3.625 APR Refi.
    December 2, 2011 6:11 am
    We will close in a week or so.

    NO Fees, NONE. (BECU Paid $1700 in Fees)

    No POINTS, NONE. Went from a 30 Year 6.5 % to a 12 year 3.625%

    Payments about the same!

    Everyone can Join BECU (in WA).

    Highly Recommend BECU, did it all by internet and phone thus far.

    Painless.

    I don't work for BECU, just a member.

    http://www.becu.org/12-year-mortgage.aspx

    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • pro_steel_header wrote...
    i'll bet some people are sorry they piss*d away all the money they had during the boom!
    December 23, 2011 9:24 pm
    should have saved at least some of it. did you think the good times would go on forever???
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • flipper wrote...
    The Underwater problem
    January 13, 2012 11:50 am
    Those of us who moved here and bought in 2006 (with 10-20% down) have seen our houses devalue in the market to the tune of some 20-30%. Meaning we have no equity, we're upside down, and we can't take advantage of any of this because the banks won't talk with us. Yes, the folks who bought in 2003 and earlier are fully capabile of a refi.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • biteme wrote...
    Do your research
    April 29, 2012 4:24 pm
    some loan restructures are going on or loan modifications to be able to take advantage of the lower rates and keep your house out of foreclosure.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Realitycheck wrote...
    biteme
    July 9, 2012 2:27 pm
    Instead of just posting insulting words, hinting at that people are lazy, post your info that can help people underwater. I heard about it over and over but every lead was a dead end so far. If you got true info that can help people underwater to re-finance you would be a a** to not post it here.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • chevysquid wrote...
    My adjustable rate should go down again then!
    May 4, 2012 10:16 am
    I have a 5/1 arm that i got in 2003 that is currently at 2.25%. It adjusts again in a few months so with any luck maybe it will go down again! After my divorce is final going to refinance at a fixed rate with probably a 12 year mortgage or so. I have equity and not going to be detroyed by the future ex in the divorce so should be easy!
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Brian Oblivion wrote...
    It could be worse
    August 24, 2012 4:53 pm
    I bought my first house in Tacoma in 1975 for $27,000. It was a brand new 3 bedroom, 1300 S.F. with a single car garage. Zero down FHA loan, $800 closing costs and the loan interest rate was 9.5%. When Jimmy Carter was elected in 1976, those rates went up to over 12% in some cases and it got ugly. The more you can pay against your mortgage, or pay cash like we have for our last two homes you'll be in good shape. Debt is debt, and the less of it you have the better, obviously. Listen to Dave Ramsey, read his books and it can be done.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • BarnDerk wrote...
    I may be alone on this, but...
    October 4, 2012 9:09 am
    It seems to me that what makes an economy strong is not so much consumption as it is production. I think that all the excess consumption is the root of the problem, and not a solution at all. With deficits, federal, personal and trade, consumption that isn't balanced with production is a dead end game we've been playing for a long time.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • { "Thumbs Up":"1","Thumbs Down":"-1" }