U.S. Mortgage Rates Edge Up Slightly

The Associated Press reported today that, “Long-term U.S. mortgage rates rose slightly this week, continuing a holding pattern that has prevailed this month.

“Mortgage buyer Freddie Mac said Thursday that the rate on 30-year, fixed-rate loans edged up to 4.16 percent from 4.15 percent last week. The benchmark rate stood at 3.62 percent a year ago and averaged 3.65 percent through 2016, the lowest level in records dating to 1971.

“The rate on 15-year mortgages rose to 3.37 percent from 3.35 percent last week.”

The AP article noted that, “Mortgage rates surged in the weeks following President Donald Trump’s election in November. Investors bid rates higher because they expect Trump’s plans to cut taxes and increase spending on roads, bridges and airports will drive up economic growth and inflation.

“But mortgage rates reversed course in the first week of the year, falling after nine straight weeks of increases. They have moved little in the past four weeks.”

Today’s article added that, “With the economy healthy, the recent trend toward higher mortgage rates hasn’t dampened home buying, new data shows. Americans bought existing homes in January at the fastest pace since 2007. That has set off bidding wars that have pushed up prices as the supply of available homes has dwindled to record lows.

“Home sales rose 3.3 percent in January from December to a seasonally-adjusted annual rate of 5.69 million, the National Association of Realtors reported Wednesday.”

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