Rate on 30-Year Fixed Mortgage Decreases to 3.98 Pct.

The average rate on the 30-year fixed mortgage stayed above its record low for a fourth consecutive week.

Freddie Mac stated that the rate on the 30-year fixed loan slipped to 3.98 percent from 4 percent the previous week.

Seven weeks ago, it decreased to a record low of 3.94 percent, according to the National Bureau of Economic Research.

Rates have been under 5 percent for all but two weeks this year.

Mortgage rates track the yield on 10-year Treasury note.

The average rates don’t include points, also known as extra fees, which most borrowers are required to pay to get the lowest rates.

1 percent of the loan amount equals one point.

The average fees for the 15-year and 30-year fixed mortgages were unchanged from 0.7.

The average rate on the five-year adjustable loan dropped to 2.91 percent from 2.97 percent.

The average rate on the one-year adjustable loan fell as welll, declining to 2.79 percent from 2.98 percent.

The average fees on the one-year and five-year adjustable loans were unchanged from 0.6.

In order to calculate average mortgage rates, Freddie Mac surveys lenders across the U.S. Monday through Wednesday of each week.

Source: businessweek.com

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