Briefly
WASHINGTON (AP) — Average long-term U.S. mortgage rates crossed the 4 percent mark this week, a slight increase in the wake of the Federal Reserve decision this month to hike a key short-term interest rate.
Mortgage buyer Freddie Mac said Thursday that the average rate on a 30-year fixed-rate mortgage rose to 4.01 percent from 3.96 percent a week earlier. That rate has risen from its 3.87 percent average a year ago and has been steadily increasing since late October.
Still, borrowing costs are well below historic average of 6 percent 30-year mortgage rates.
The average rate on 15- year fixed-rate mortgages increased to 3.24 percent from 3.22 percent.
Low mortgage rates and steady hiring gains have bolstered home sales for much of 2015.
Sales of existing homes are slated to rise about 5 percent this year to 5.25 million, according to the National Association of Realtors.
The cheaper borrowing costs have offset some of the affordability problems caused this year by home values appreciating by 6 percent to a median of $220,700, more than double the increase in average hourly earnings.
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