Mortgage Rates Fall For The First Time This Year

Dated: 03/16/2018

Views: 221

Mortgage rates fall for the first time this year

WASHINGTON (AP) – March 15, 2018 – Long-term U.S. mortgage rates fell this week for the first time this year as the spring home buying season begins. The decline comes after nine straight weeks of increases that pushed borrowing costs higher.

Mortgage buyer Freddie Mac said Thursday the average rate on 30-year fixed-rate mortgages slipped to 4.44 percent from 4.46 percent last week. The new average rate remains at a high level, however, raising concerns that home sales could be dampened. The benchmark rate averaged 4.30 percent a year ago.

The average rate on 15-year, fixed-rate loans declined to 3.90 percent from 3.94 percent last week.

Mortgage rates rose steadily in January, February and early March, as interest rates generally increased in response to higher levels of government debt and expectations of rising inflation.

In addition to higher mortgage rates, home affordability also has been affected by increases in average home prices that have eclipsed wage growth. And the number of homes for sale has been shrinking.

The government reported Tuesday that consumer prices increased at a modest pace in February, indicating that inflation pressures may be easing. Overall consumer prices rose 2.2 percent in February from a year earlier.

The report spurred a decline in the yield on the 10-year U.S. Treasury note, which is closely tracked by mortgage rates. The yield stood at 2.82 percent Thursday, compared with 2.46 percent at the start of the year.

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. The fees on 30-year and 15-year fixed-rate loans were 0.5 percent, unchanged from last week. Fees for five-year adjustable mortgages also held steady, at 0.4 percent.

AP LogoCopyright © 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Want to Advertise on this Site?

Latest Blog Posts

Kens YouTube Channel

Here's a link to check out Ken's YouTube Channel:Unfortunately, an error occurred: Panel only seen by widget

Read More

Check Out Episode 2 Of Just Florida TV Where We Explore The Florida Aquarium And More

In this Episode Team SKL takes you on a behind the scenes tour of the Florida Aquarium.  We also take another look back at John's Pass and tour the historical boardwalk and village! 

Read More

Kitchen Fire Safety

Kitchen Fire SafetyThere are a number of potential causes of kitchen fires. There are the usual fire hazards such as electrical shorts, but you also have kitchen-specific risks such as splashing oil

Read More

3 Out Of 4 Millennials Think They Know How To Sell A Home THINK AGAIN

3 out of 4 millennials think they know how to sell a homeIRVINE, Calif. – Jun 12, 2019 – More than three-quarters of millennials feel very confident about how to sell a home, but very few have

Read More