Average 30-Year US Mortgage Rate Up to 4.37 Percent


Average U.S. rates on fixed mortgages rose for a third straight week, as new data showed a surprisingly strong pace of new-home sales last month. Rates still remain near historically low levels.

Mortgage buyer Freddie Mac said Thursday the average rate for the 30-year loan increased to 4.37 percent, from 4.33 percent last week. The average for the 15-year mortgage rose to 3.39 percent, from 3.35 percent.

A report Wednesday from the Commerce Department boosted expectations that the spring home buying season will be solid enough to lift the overall economy.

Sales of new homes rebounded in January to the fastest rate in more than five years. The strength in purchases followed a slowdown that had been linked to higher mortgage rates and severe winter weather.

Mortgage rates have risen about a full percentage point since hitting record lows roughly a year ago. The increase was driven by speculation that the Federal Reserve would reduce its $85-billion-a-month bond purchases. Deeming the economy to be gaining strength, the Fed proceeded last month with planned reductions of its bond purchases, which have helped keep long-term interest rates low.

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, that 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 points. The fee for a 15-year loan also remained at 0.7 points.

The average rate on a one-year adjustable-rate mortgage fell to 2.52 percent, from 2.57 percent. The average fee increased to 0.4 points, from 0.3 points.

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