Average US long-term mortgage rate ticks back down this week

Nov 4, 2021, 7:01 AM | Updated: 7:32 am

SILVER SPRING, Md. (AP) — The average long-term mortgage rate in the U.S. ticked back down this week following several weeks of increases.

Mortgage buyer Freddie Mac reported Thursday that the average rate for a 30-year mortgage fell to 3.09% from 3.14% last week. Last year at this time the long-term rate stood at 2.78%.

The rate for a 15-year loan, a popular option for homeowners refinancing their mortgages, fell to 2.35% from 2.37% last week.

Rates remain historically low, though limited inventory and rising prices are leaving many potential homebuyers on the sidelines.

Last week, the government reported that the median price of a new home rose to a record $408,800 in September, up 9.5% from a year ago. The median price for an existing home jumped to $352,800, a 13.3% increase from September last year, according to the National Association of Realtors.

“While mortgage rates fell after several weeks on the rise, we expect future upticks due to stronger economic data and as the Federal Reserve pulls back on its stimulus,” said Sam Khater, Freddie Mac’s chief economist.

As expected on Wednesday, the Federal Reserve announced that it would keep its main borrowing rate near zero but begin dialing back the extraordinary stimulus it’s provided since the pandemic erupted last year. The Fed said it will start reducing its $120 billion in monthly bond purchases in the coming weeks, by $15 billion a month, citing an improving economy and escalating concern that high inflation now seems likely to persist.

The Fed’s announcement came as higher prices for just about everything — food, rent, heating oil, autos and other necessities — have burdened households.

Also on Thursday, the government reported that the number of Americans applying for unemployment benefits fell to a pandemic low last week, another sign the job market is healing after last year’s coronavirus recession. Overall, 2.1 million Americans were collecting unemployment checks the week of Oct. 23 — down from 7.1 million a year earlier when the economy was still reeling from the coronavirus outbreak.

Last week, the government reported that the U.S. economy slowed sharply to a 2% annual growth rate in the July-September period, the weakest quarterly expansion since the recovery from the pandemic recession began last year. Rising COVID-19 cases and supply shortages were cited as factors hampering growth.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - A Goodwill store sign is shown in Berkeley, Calif., Tuesday, March 9, 2021. Goodwill Industr...
Associated Press

Iconic Goodwill gets serious with online for thrifters

NEW YORK (AP) — Thrifters who flock to Goodwill stores will now be able to do some serious treasure hunting online as well. The Goodwill Industries International Inc., the 120-year-old non-profit organization that operates 3,300 stores in the U.S., and Canada, has launched an online business as part of a newly incorporated venture called GoodwillFinds. […]
3 hours ago
President Joe Biden and first lady Jill Biden walk out of the White House to board Marine One in Wa...
Associated Press

Biden marks 100 days since Dobbs ruling as Dems eye midterms

WASHINGTON (AP) — President Joe Biden is highlighting his administration’s efforts to protect access to abortion as he marks 100 days since the Supreme Court overturned a national right to the procedure and Democrats hope the issue will galvanize their voters ahead of the midterm elections. Biden on Tuesday will attend the second meeting of […]
3 hours ago
Robert Habeck, Federal Minister for Economic Affairs and Climate Protection, and Markus Krebber, ri...
Associated Press

German energy giant RWE to end coal use by 2030

BERLIN (AP) — German energy giant RWE said Tuesday that it will phase out the burning of coal by 2030, saving 280 million metric tons of climate-changing greenhouse gas emissions. The decision will accelerate the closure of some of Europe’s most polluting power plants and a vast lignite strip mine in the west of the […]
3 hours ago
A man pumps water in front of destroyed house in the recently recaptured town of Lyman, Ukraine, Mo...
Associated Press

Live Updates: Russia-Ukraine War

The city council of Kyiv says it is providing evacuation centers with potassium iodine pills in preparation for a possible nuclear strike on the capital, Ukraine’s largest city. Potassium iodine pills can help block the absorption of harmful radiation by the thyroid gland if taken just before or immediately after exposure to nuclear radiation. The […]
3 hours ago
British Prime Minister Liz Truss applauds Chancellor of the Exchequer Kwasi Kwarteng as he delivers...
Associated Press

UK’s Truss vows to listen as she reels from policy U-turns

BIRMINGHAM, England (AP) — British Prime Minister Liz Truss has insisted she is leading “a listening government” that learns from its mistakes, as she tries to restore her shaky authority and reassure financial markets spooked by her government’s see-sawing economic pledges. Truss told the BBC in an interview broadcast Tuesday that she and her ministers […]
3 hours ago
FILE - Russian President Vladimir Putin, center, watches through binoculars as Russian Defense Mini...
Associated Press

What’s Putin thinking? Tough to know for nuclear analysts

PARIS (AP) — Will President Vladimir Putin pull the nuclear trigger? For Kremlin watchers trying to figure out whether the Russian leader’s nuclear threats are just bluffs, there is no more pressing — or tough — question. For now, analysts cautiously suggest that the risk of Putin using the world’s biggest nuclear arsenal still seems […]
1 day ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
...
Mayo Clinic Orthopedics and Sports Medicine

Why your student-athlete’s physical should be conducted by a sports medicine specialist

Dr. Anastasi from Mayo Clinic Orthopedics and Sports Medicine in Tempe answers some of the most common questions.
Average US long-term mortgage rate ticks back down this week