Quantcast
Get breaking news alerts via email

Click here to manage your alerts
In this May 14, 2014 photo, a sign hangs in front of a new home for sale in Riverview, Fla. Freddie Mac reports on average U.S. mortgage rates for this week on Thursday, June 19, 2014. (AP Photo/Chris O'Meara)
Average U.S. 30-year mortgage rate at 4.17 percent
Housing » Hope is to make homes more affordable for would-be buyers.
First Published Jun 19 2014 11:12 am • Last Updated Jun 19 2014 03:04 pm

Washington • Average U.S. rates on fixed mortgages eased slightly this week, remaining near historic lows.

Mortgage buyer Freddie Mac said Thursday the average rate for a 30-year loan declined to 4.17 percent from 4.20 percent last week. The average for the 15-year mortgage dipped to 3.30 percent from 3.31 percent.

Join the Discussion
Post a Comment

Rising prices and higher interest rates beginning in mid-2013 have made homes less affordable for would-be buyers. At the same time, a limited supply of homes is available to buy. Sales of new homes are running about half the rate of a healthy housing market.

Reflecting the struggle for many Americans to afford new houses, data issued Tuesday by the Commerce Department showed that the pace of U.S. home construction slipped in May. Builders started work at a seasonally-adjusted yearly rate on 1.01 million homes, down 6.5 percent from 1.07 million in April.

And U.S. homebuilders are feeling more confident about the housing market but don’t think it is healthy yet, the National Association of Home Builders/Wells Fargo builder sentiment index for June showed Monday.

Mortgage rates are about a quarter of a percentage point higher than they were at the same time last year. The increase in rates over the past year or so was driven in part by speculation that the Federal Reserve would reduce its bond purchases, which have helped keep long-term interest rates low. Indeed, the Fed has announced five declines in its monthly bond purchases since December because the economy appears to be steadily healing. But the Fed has no plans to raise its benchmark short-term rate from record lows.

After the central bank ended a two-day policy meeting, Fed Chair Janet Yellen sent the message Wednesday that the economy still isn’t healthy enough to grow at a consistently strong pace without the Fed’s help. Yellen made clear that despite a steadily improving job market and signs of creeping inflation, the Fed sees no need to raise short-term interest rates from record lows anytime soon.

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 fee for a 30-year mortgage was unchanged from a week earlier at 0.6 point. The fee for a 15-year loan also was steady, at 0.5 point.

The average rate on a one-year adjustable-rate loan ticked up to 2.41 percent from 2.40 percent. The average fee remained at 0.4 point.


story continues below
story continues below

The average rate on a five-year adjustable mortgage fell to 3.00 percent from 3.05 percent. The fee was stable at 0.4 point.



Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.