Long-term mortgage rates near historic lows: 30-year 3.55%

Business

In this Aug. 16, 2019, photo a for sale signs beckon buyers to homes along Park Avenue in Richmond, Va. On Thursday, Aug. 22, Freddie Mac reports on this week’s average U.S. mortgage rates. (AP Photo/Steve Helber)

WASHINGTON (AP) — U.S. long-term mortgage rates are near historically low levels, with the average on the benchmark 30-year loan falling this week to its lowest level since November 2016.

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan slipped to 3.55% this week from 3.60% last week. The rate stood at 4.51% a year ago.

The average mortgage rate for 15-year, fixed-rate home loans eased to 3.03% from 3.07% last week.

The low borrowing rates have been a boon for homebuyers, even as global financial markets are roiled by concerns over the global economy.

U.S. stocks have rebounded this week after last week’s steep plunge triggered when the bond market sent out a signal that a recession could be on the horizon. Still, markets around the world continue to be raked by anxiety over the U.S.-China trade war and slowing global economic growth.

Investors fleeing stocks to the safety of bonds have sent bond interest rates to record lows. The yield on the key 10-year Treasury note — which influences rates on long-term mortgages — ticked up to 1.59% Wednesday from 1.56% late Tuesday. It briefly dropped below the 2-year Treasury’s yield for the first time in a week.

That rare so-called inversion of the Treasury yield curve has accurately predicted the past five U.S. recessions. It suggests that bond investors expect growth to slow so much that the Federal Reserve will soon feel compelled to slash short-term rates to try to support the economy.

Investors are looking ahead to a speech Friday by Fed Chairman Jerome Powell for clues about possible interest rate cuts.

The climate of low home mortgage rates has sparked a flurry of activity by prospective homebuyers as well as owners looking to refinance mortgages.

Freddie Mac surveys lenders across the country between Monday and Wednesday each week to compile its mortgage rate figures.

The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates.

The average fee on 30-year fixed-rate mortgages was unchanged this week at 0.5 point.

The average fee for the 15-year mortgage also remained at 0.5 point.

The average rate for five-year adjustable-rate mortgages fell to 3.32% from 3.35% last week. The fee was steady at 0.3 point.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don't Miss

More Don't Miss

Trending Stories

Turkey Day Giveaway

Days

Hours

Minutes

Seconds

Recent Videos

Mom builds Halloween display for terminally ill son

Thumbnail for the video titled "Mom builds Halloween display for terminally ill son"

Duncan School Threat

Thumbnail for the video titled "Duncan School Threat"

Sikes Senter Mall robbery

Thumbnail for the video titled "Sikes Senter Mall robbery"

Horses help inmates struggling with anger and anxiety

Thumbnail for the video titled "Horses help inmates struggling with anger and anxiety"

Building a better guide dog

Thumbnail for the video titled "Building a better guide dog"

Crash survivor spends week trapped in car

Thumbnail for the video titled "Crash survivor spends week trapped in car"

Man sets sit-up record on 70th birthday

Thumbnail for the video titled "Man sets sit-up record on 70th birthday"

Cancer fighters strike up friendship and create song writing duo

Thumbnail for the video titled "Cancer fighters strike up friendship and create song writing duo"

President Trump's MAGA rally & presidential candidate Beto O'Rourke's counter rally

Thumbnail for the video titled "President Trump's MAGA rally & presidential candidate Beto O'Rourke's counter rally"

Birthdays & Anniversaries 10-18-19

Thumbnail for the video titled "Birthdays & Anniversaries 10-18-19"

Orville Merritt scheduled to plead

Thumbnail for the video titled "Orville Merritt scheduled to plead"

Man arrested outside President Trump's rally in Dallas

Thumbnail for the video titled "Man arrested outside President Trump's rally in Dallas"
Get FREE Text Alerts
Report It

Latest News

More Local News