Average US 30-year mortgage rate rises to 3.57 per cent

WASHINGTON – Long-term U.S. mortgage rates rose this week for a second straight week.

Mortgage giant Freddie Mac said Thursday the average for a 30-year fixed-rate mortgage increased to 3.57 per cent from 3.54 per cent last week. Rates remain near historically low levels, however. The benchmark 30-year rate is down from 3.98 per cent a year ago. Its all-time low was 3.31 per cent in November 2012.

The 15-year fixed-rate mortgage, popular with homeowners who are refinancing, rose to 2.88 per cent from 2.84 per cent.

The rates reflect the mortgage market in the week prior to Republican nominee Donald Trump’s election as president. On Wednesday, the day the result became known, bond prices fell sharply. That sent yields higher. Long-term mortgage rates tend to track the yield on the 10-year Treasury note, which jumped to 2.06 per cent from 1.80 per cent a week earlier — exceeding 2 per cent for the first time since January. Traders have been selling bonds more aggressively to hedge against the possibility that interest rates, which have been extremely low for years, could rise steadily under a Trump administration.

The sell-off in bonds continued Thursday morning, with the yield on the 10-year Treasury note rising to 2.12 per cent.

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 was unchanged from last week at 0.5 point. The fee for a 15-year loan also held steady at 0.5 point.

Rates on adjustable five-year mortgages averaged 2.88 per cent, up from 2.87 per cent last week. The fee remained at 0.4 point.