Long-term mortgage rates are up in the US (Nov. 12)
Mortgage rates were bolstered by the news that a COVID-19 vaccine may be 90 percent effective, based on early results.
WASHINGTON (AP) — US long-term mortgage rates rose this week. They remain at historically low levels, now around a percentage point below a year ago.
Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year benchmark loan increased to 2.84 percent from 2.78 percent last week. By contrast, the rate averaged 3.75 percent a year ago.
The average rate on the 15-year fixed-rate mortgage edged up to 2.34 percent from 2.32 percent.
Breaking their downward trend through most of this year, mortgage rates were bolstered by the news Monday that a COVID-19 vaccine may be 90 percent effective, based on early and incomplete test results.
The vaccine announcement was made two days after Joe Biden became president-elect upon defeating President Donald Trump by crossing the winning threshold of 270 Electoral College votes with a win in Pennsylvania.
The historically low borrowing rates have bolstered demand from prospective home buyers. Demand for homes has remained strong despite a brief slowdown in the early days of the coronavirus pandemic, but at the same time the rise in home prices has stretched the limits of affordability for many would-be buyers.
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