Quantcast
  

Tuesday, April 15, 2014         

 Print   Email   Comment | View 2 Comments   Most Popular   Save   Post   Retweet

Rate on 30-year mortgage rises

By Marcy Gordon

AP Business Writer

POSTED:
LAST UPDATED: 04:56 a.m. HST, Oct 11, 2012


WASHINGTON » 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.

Mortgage buyer Freddie Mac said today that the rate on the 30-year loan increased to 3.39 percent from 3.36 percent. The previous week's rate was the lowest since long-term mortgages began in the 1950s.

The average on the 15-year fixed mortgage edged up to 2.70 percent, from last week's record low of 2.69 percent.

The average rate on the 30-year fixed mortgage has been below 4 percent all year. And rates have fallen even further since the Federal Reserve started buying mortgage bonds in September to encourage more borrowing and spending.

The Fed said it will continue buying bonds until the job market shows substantial improvement. When home prices rise, people tend to feel wealthier and spend more freely. Consumer spending drives nearly 70 percent of economic activity.

Stronger housing markets helped boost economic growth at the end of the summer in nearly every region of the United States, according to a Fed survey released Wednesday. The survey follows other reports that show marked improvement in the housing market five years after the bubble burst.

Home sales are up from last year and home prices are rising more consistently in most areas. Builders are more confident and starting more homes. Lower rates have also persuaded more people to refinance. That typically leads to lower monthly mortgage payments and more spending.







 Print   Email   Comment | View 2 Comments   Most Popular   Save   Post   Retweet

COMMENTS
(2)
You must be subscribed to participate in discussions
By participating in online discussions you acknowledge that you have agreed to the TERMS OF SERVICE. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. Because only subscribers are allowed to comment, we have your personal information and are able to contact you. If your comments are inappropriate, you may receive a warning, and if you persist with such comments you may be banned from posting. To report comments that you believe do not follow our guidelines, email commentfeedback@staradvertiser.com.
Leave a comment

Please login to leave a comment.
honokai wrote:
3.39 percent from 3.36 percent
on October 11,2012 | 05:54AM
ardee wrote:
And it's a news!
on October 11,2012 | 09:41AM
IN OTHER NEWS
Breaking News
Blogs
Political Radar
HB 1700 — Day 1

Hoops Talk
Aloha Shamburger

Political Radar
Stacked

Political Radar
HFFA

Warrior Beat
All’s fair

Political Radar
Apology

Political Radar
SD 23