US average 30-year mortgage rate edges up to 4.16 per cent

But mortgage rates reversed course in the first week of the year, falling after nine straight weeks of increases. They have moved little in the past four weeks.

The economy has been showing solid gains but there is uncertainty around the new Trump administration and its economic policies. Federal Reserve policymakers early this month decided to leave a key interest rate unchanged. But they discussed the need to raise the rate again “fairly soon,” especially if the economy remains strong.

With the economy healthy, the recent trend toward higher mortgage rates hasn’t dampened home buying, new data shows. Americans bought existing homes in January at the fastest pace since 2007. That has set off bidding wars that have pushed up prices as the supply of available homes has dwindled to record lows.

Home sales rose 3.3 per cent in January from December to a seasonally-adjusted annual rate of 5.69 million, the National Association of Realtors reported Wednesday.

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 fell to 3.16 per cent from 3.18 per cent last week. The fee held at 0.4 point.

The Associated Press

by Canadian Press

US average 30-year mortgage rate edges up to 4.16 per cent

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