End-of-year mortgage rates remain below 4%

01/07/2015

End-of-year mortgage rates remain below 4%

WASHINGTON (AP) – Jan. 5, 2015 – Average U.S. mortgage rates rose slightly last week, but the benchmark 30-year rate stayed near a 19-month low.

Mortgage giant Freddie Mac says the nationwide average for a 30-year fixed rate mortgage increased to 3.87 percent last week, up from 3.83 percent one week earlier. The rate hit 3.80 percent earlier in December, its lowest since May 2013.

The average for a 15-year mortgage also rose – to 3.15 percent from 3.10 a week earlier. The rate for a one-year adjustable-rate mortgage blipped up to 2.40 percent from 2.39 percent.

A year ago, the 30-year mortgage stood at 4.53 percent and the 15-year mortgage at 3.55 percent. Mortgage rates have remained low even though the Federal Reserve in October ended its monthly bond purchases, which were meant to keep long-term rates low.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of 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 fee for a 30-year mortgage was 0.6 point, unchanged from last week. The fee for a 15-year mortgage was also unchanged at 0.6 point. The fee for a one-year ARM also was unchanged at 0.4 point.

The average rate on a five-year adjustable-rate mortgage stayed at 3.01 percent; the fee was also unchanged at 0.5 point.

AP Logo Copyright 2014 The Associated Press, Paul Wiseman. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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