- Federal Reserve announced this week it would begin pulling back on it’s bond-buying program
- Average 15-year mortgage rate rose to 3.51%
- Five-year adjustable mortgage rose to 2.96%
Average U.S. rates for fixed mortgages rose slightly this week but remained near historically low levels.
Mortgage buyer Freddie Mac said Thursday the rate on the 30-year loan increased to 4.47% from 4.42% last week. The average on the 15-year fixed loan rose to 3.51% from 3.43%.
Mortgage rates peaked at 4.6% in August and have stabilized since September, when the Federal Reserve surprised markets by taking no action on starting to reduce its $85 billion-a month bond purchases. The Fed decided this week that the outlook for the economy appeared strong enough for it to reduce the monthly bond purchases starting in January by $10 billion.
The purchases are designed to keep long-term rates such as mortgage rates low.
Read the full report here.