U.S .common mortgage charges largely decrease; 30-year at 2.93%
WASHINGTON – Mortgage rates were mostly lower last week as the economy continued to show signs of recovery from the pandemic recession and the recent outbreaks of inflation were viewed by policymakers as temporary.
Mortgage buyer Freddie Mac announced Thursday that the average for the major 30-year home loan fell from 2.96% last week to 2.93%. In contrast, the rate a year ago was 3.13%.
The interest rate on a 15 year loan, a popular option among homeowners refinancing their mortgages, rose from 2.23% last week to 2.24%.
The Federal Reserve signaled on Wednesday that it may act earlier than previously planned to begin pulling back on the low interest rate policy, which has helped a quick recovery from the recession but also coincided with rising inflation. Fed Chairman Jay Powell said the last two months’ inflation spikes are likely to prove temporary.
In the latest business news, the government reported Thursday that the number of Americans claiming unemployment benefits rose to 412,000 for the first time since April last week.