In brief: 30-, 15-year mortgages dip to record lows, again

WASHINGTON – Average U.S. rates for 30-year and 15-year fixed mortgages fell to fresh record lows this week. Cheap mortgage rates have made home-buying and refinancing more affordable than ever for those who can qualify.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan ticked down to 3.83 percent. That’s the lowest since long-term mortgages began in the 1950s. And it’s below the previous record rate of 3.84 percent reached last week.

The 15-year mortgage, a popular option for refinancing, dropped to 3.05 percent, also a record. That’s down from last week’s previous record of 3.07 percent.

The average one-year adjustable rate was 2.73 percent last week, compared with 2.7 percent the previous week.

Deutsche Bank to pay millions for mortgage fraud

NEW YORK – Deutsche Bank agreed to pay $202 million to settle civil fraud charges brought by the federal government over the practices of a subsidiary it acquired five years ago, authorities announced Thursday.

A federal judge in Manhattan approved the deal reached by representatives of the Frankfurt, Germany-based bank and the government.

Under the agreement, Deutsche Bank AG admitted that it didn’t follow all federal housing regulations when it made substantial profits between 2007 and 2009 from the resale of risky mortgages through its subsidiary MortgageIT.

According to the agreement, Deutsche Bank admitted that it was in a position to know that MortgageIT’s operations did not conform fully to all of the government’s regulations, policies and handbooks. The subsidiary employed more than 2,000 people at branches in all 50 states. The bank agreed to pay $202.3 million to the U.S. Department of Justice within a month.

Nordstrom reports 1Q profit up 2.7 percent

NEW YORK – Upscale retailer Nordstrom Inc. said its first-quarter net income rose a slim 2.7 percent as it spent more on free shipping and other initiatives that boosted sales but squeezed its profit margin.

The earnings fell short of Wall Street expectations, and the department store chain’s shares fell more than 5 percent in after-hours trading Thursday evening following the report.

Sales have rebounded since late 2009 for Nordstrom and many other luxury retailers as well-heeled shoppers have gotten more comfortable with splurging again, despite the vagaries of the stock markets. But Nordstrom and others also face a new challenge in shoppers, armed with smartphones and tablets, who are rethinking customer service. That’s pushing the upscale merchant, long known for its service, to light new paths in the digital era.

The Seattle-based company report net income of $149 million, or 70 cents per share, for the three months that ended April 28. That compares with $145 million, or 65 cents per share, a year earlier.

Analysts were expecting higher earnings of 75 cents per share, according to FactSet.

Nordstrom’s net sales rose to $2.54 billion, just shy of analysts’ average forecast for $2.55 billion.