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Washington /Â AP
Long-term U.S. mortgage rates rose this week but remain at levels low enough to boost home sales in the spring buying season.
Mortgage buyer Freddie Mac says the average 30-year fixed-rate mortgage edged up to 3.56% from a 52-week low of 3.54% last week. The rate is down from 4.02% a year ago. The average rate on the 15-year fixed rate mortgage also rose — to 2.83% from a 52-week low of 2.81 percent. A year ago, the 15-year rate stood at 3.21%.
Worries about the Âglobal economy — have sent investors scurrying to the relative safety of U.S. Treasury bonds. Their purchases have driven rates lower. And long-term mortgage rates track the yield on 10-year Treasury notes.
Last week, the Federal Reserve decided to keep short-term rates unchanged at 0.25% to 0.50%. “The low rates continue to be good news for the housing market,” said Sean Becketti, chief economist at Freddie Mac. The National Association of Realtors reported that sales of existing homes rose in May to the highest level since February 2007. But the Commerce Department reported that new-home sales dropped 6% in May, though they are up 6.4% so far this year.
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% of the loan amount.