Long-term mortgage rates have surpassed 3% for the first time since July
The average rate on 15-year fixed-rate loans, popular among those seeking to refinance their mortgages, was unchanged.
WASHINGTON (AP) — US long-term mortgage rates were steady to higher this week, as the benchmark 30-year loan breached the 3 percent mark for the first time since July 2020. Rates remain near historic lows as the economy strains toward recovery in the pandemic’s wake.
Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year fixed-rate home loan rose to 3.02 percent from 2.97 percent last week. By contrast, the benchmark rate stood at 3.29 percent a year ago.
The average rate on 15-year fixed-rate loans, popular among those seeking to refinance their mortgages, was unchanged at 2.34 percent this week.
While economists expect modest increases in home-loan rates this year, they likely will remain low while the Federal Reserve keeps interest rates near zero until the economy recovers.
The record-low lending rates have helped push buyers into the housing market, which remains one of the stronger sectors of the US economy. But the lack of supply of homes, which was pushing up prices even before the pandemic struck last March, has left many prospective buyers empty-handed.
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