Average rate on US 30-year mortgage rises to 4.29 per cent; 15-year increases to 3.3 per cent

WASHINGTON – Average U.S. mortgage rates rose modestly this week, a move that makes home-buying a bit less affordable. Still, rates remain near historically low levels.

Mortgage buyer Freddie Mac said Wednesday that the average rate on the 30-year loan increased to 4.29 per cent from 4.22 per cent last week. The average on the 15-year fixed ticked up to 3.3 per cent from 3.27 per cent.

Rates have risen nearly a full percentage point since May after the Federal Reserve signalled it might slow its bond purchases by the end of the year. Rates peaked at nearly 4.6 per cent in August. But the Fed held off in September and most analysts expect it won’t move until next year.

The increase in mortgage rates has contributed to a slowdown in home sales over the past two months.

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 per cent of the loan amount.

The average fee for a 30-year mortgage was unchanged at 0.7 point. The fee for a 15-year loan also was unchanged at 0.7 point.

The average rate on a one-year adjustable-rate mortgage edged down to 2.60 per cent, from 2.61 per cent last week. The fee was unchanged at 0.4 point.

The average rate on a five-year adjustable mortgage edged down to 2.94 per cent this week, from 2.95 per cent last week. The fee was unchanged at 0.5 point.