US average mortgage interest rate rises slightly; 30 years at 2.87%

WASHINGTON Mortgage rates rose marginally last week and continue a pattern of little movement in recent weeks amid uncertainty about the effect of the delta coronavirus variant on the economic recovery.

The average interest rate for home loans remains historically low at less than 3 percent. Mortgage buyer Freddie Mac reported Thursday that the average for the 30-year mortgage rose to 2.87 percent from 2.86 percent last week. The benchmark interest rate, which peaked at 3.18 percent in April this year, stood at 2.91 percent a year ago.

The rate for a 15-year loan, a popular option among homeowners refinancing their mortgage, rose from 2.16 percent last week to 2.17 percent.

Concerns are mounting that the now dominant delta variant is starting to cause an economic slowdown, uncertainty that has kept mortgage rates within a narrow band. In recent weeks, many economists have lowered their estimates of U.S. economic growth for this quarter and for 2021 as a whole, as the variant has boosted confirmed COVID cases across the country.

A government report on Thursday showed that US gross domestic product and total output of goods and services grew at a hefty 6.6 percent year-on-year in the April-June quarter, slightly faster than previously estimated.

Meanwhile, the number of Americans filing for unemployment benefits has risen for the first time in five weeks, as the economy and labor market are recovering solidly from the pandemic recession. Claims rose by 4,000, to 353,000 from a pandemic low of 349,000 a week earlier.

” Previous

Next one ”

related stories