Average US 30-year mortgage rate slips to 4.23 per cent

Mortgage rates rose sharply after the Nov. 8 election. Investors bid rates up because they expect President Trump’s plans to cut taxes and increase spending on defence and infrastructure to push economic growth and inflation higher.

The Federal Reserve last week raised short-term rates for only the third time since 2006, a vote of confidence in the health of the U.S. economy.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday 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 this week at 0.5 point. The fee on 15-year loans also remained at 0.5 point.

Rates on adjustable five-year loans tumbled to 3.24 per cent from 3.28 per cent last week. The fee remained at 0.4 point.

Paul Wiseman, The Associated Press

by Canadian Press

Average US 30-year mortgage rate slips to 4.23 per cent

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