Comment
0
Tweet
0
Print
RSS Feeds

US rate on 30-year mortgage falls to 4.29 percent

Thursday - 7/4/2013, 1:42am  ET

FILE - In this Sunday, June 16, 2013 photo, a home is for sale in Glenview, Ill. Average U.S. rates on fixed mortgages eased the week of July 1, 2013, after a surge a week earlier, declines that could prompt home buyers to act quickly before rates rise further. (AP Photo/Nam Y. Huh, File)

MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) -- Average U.S. rates on fixed mortgages fell this week after last week's surge. The declines could prompt homebuyers to act quickly before rates rise further.

Freddie Mac said Wednesday that the average on the 30-year loan dropped to 4.29 percent. That's down from 4.46 percent last week, the highest in two years and a full point more than a month ago.

The average on the 15-year mortgage fell to 3.39 percent, down from 3.50 percent last week -- the highest since August 2011.

Mortgage rates jumped last week after the Federal Reserve signaled it could slow its monthly bond purchases later this year if the economy keeps improving. The bond purchases have kept long-term interest rates down, making mortgages and other consumer loans cheaper. A pullback by the Fed would likely send rates higher.

Despite the gains, mortgages are still low by historical standards. Low mortgage rates have helped fuel a housing recovery that has kept the economy growing modesty.

In May, completed sales of previously occupied homes surpassed the 5 million mark for the first time in 3
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.