Average US rate on 30year mortgage slips to 376 per cent 15year

WASHINGTON – Average long-term U.S. mortgage rates were slightly lower to unchanged this week amid expectations that the Federal Reserve isn’t ready yet to raise its key short-term interest rate.Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage slipped to 3.76 per cent from 3.79 per cent a week earlier. The rate on 15-year fixed-rate mortgages stayed at 2.98 per cent.It was the 14th straight week of rates below 4 per cent, and they are well below last year’s levels. A year ago, the average 30-year mortgage rate was 3.98 per cent, while the rate for 15-year loans was 3.13 per cent.The Fed announced Wednesday that it’s keeping the key rate at a record low near zero in light of a weak global economy, slower U.S. hiring and subpar inflation. But it signalled the possibility of a rate hike in December.It was the first time in seven years of record-low rates that the Fed has explicitly raised the possibility that it could raise the benchmark rate at its next meeting.Data issued Thursday showed that September marked a slowdown in Americans signing contracts to buy homes, the second consecutive decline for a real estate market that has been rebounding for the first half of 2015.The National Association of Realtors said its seasonally-adjusted index of pending home sales dropped 2.3 per cent to 106.8 last month. The index has risen 3 per cent over the past 12 months, aided by solid hiring levels and low mortgage rates that fueled stronger demand during the traditional summer buying season.Sales of new homes plunged sharply in September to the slowest pace in 10 months, as higher prices and slower economic growth weigh on the housing market, according to government data out Monday.To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of 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 per cent of the loan amount.The average fee for a 30-year mortgage held steady from last week at 0.6 point. The fee for a 15-year loan rose to 0.6 point from 0.5 point.The average rate on five-year adjustable-rate mortgages was unchanged at 2.89 per cent; the fee remained at 0.4 point. The average rate on one-year ARMs fell to 2.54 per cent from 2.62 per cent; the fee held at 0.2 point. FILE – In a March 21, 2014, photo, a home is for sale in Shaker Heights, Ohio. Freddie Mac reports on average U.S. mortgage rates on Thursday, Oct. 29, 2015. (AP Photo/Tony Dejak, File) by The Associated Press Posted Oct 29, 2015 8:28 am MDT Last Updated Oct 29, 2015 at 10:40 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email Average US rate on 30-year mortgage slips to 3.76 per cent; 15-year loan stays at 2.98 per cent

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