Arrow-right Camera

The Spokesman-Review Newspaper The Spokesman-Review

Thursday, December 12, 2019  Spokane, Washington  Est. May 19, 1883
Cloudy 40° Cloudy
News >  Business

Long-term mortgage rates slip this week

This Thursday, April 27, 2017, file photo shows a sign promoting town homes for sale, in Charlotte, N.C. (Chuck Burton / Associated Press)
This Thursday, April 27, 2017, file photo shows a sign promoting town homes for sale, in Charlotte, N.C. (Chuck Burton / Associated Press)
By Paul Wiseman Associated Press

WASHINGTON – Long-term U.S. mortgage rates dropped slightly this week.

Mortgage buyer Freddie Mac says the benchmark 30-year, fixed-rate mortgage averaged 3.90 percent, down from 3.91 percent last week. The rate stood at 3.56 percent a year ago and averaged a record low 3.65 percent in 2016.

The 15-year, fixed-rate home loan, popular with homeowners seeking to refinance their mortgages, also blipped lower – to 3.17 percent from 3.18 percent. A year ago, the 15-year rate was 2.83 percent.

The rate on five-year, adjustable-rate mortgages decreased to 3.14 percent from 3.15 percent. It was 2.74 percent a year ago.

Mortgage rates have remained low even though the Federal Reserve has been raising short-term rates: The Fed last week ratcheted rates higher for the third time in six months.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday 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 percent of the loan amount.

The average fees on 30-year, 15-year and five-year adjustable mortgages were unchanged at 0.5 point.

Subscribe to the Morning Review newsletter

Get the day’s top headlines delivered to your inbox every morning by subscribing to our newsletter.

You have been successfully subscribed!
There was a problem subscribing you to the newsletter. Double check your email and try again, or email webteam@spokesman.com