With Fed Move on Horizon, Mortgage Rates Edge Up to 3.95%
WASHINGTON (AP) -- Average long-term U.S. mortgage rates edged higher this week following three straight weeks of declines, amid expectations that the Federal Reserve will raise its key short-term interest rate next week.
Mortgage buyer Freddie Mac says the average rate on a 30-year fixed-rate mortgage rose to 3.95 percent from 3.93 percent a week earlier. The average rate on 15-year fixed-rate mortgages increased to 3.19 percent from 3.16 percent.
The key 30-year rate was slightly above its level of a year ago, 3.93 percent. The rate has increased significantly overall since the end of October, when it stood at 3.76 percent.
An interest rate hike by the Fed, expected to come at its policymaking meeting next Tuesday and Wednesday, would be the central bank's first in nearly a decade.