Arlington, Va., United States (4E) – For the first time in seven weeks, the average rates on fixed mortgages rose. However, rates are still near historic lows.
Mortgage giant Freddie Mac reported Thursday that the average rate on a 30-year loan ticked up to 3.71 percent. That is an increase from last week’s record low of 3.67 percent, the lowest since long-term mortgages began in the 1950s.
The average rate on the 15-year mortgage, popular among homeowners looking to refinance, rose from 2.94 percent to 2.98 percent.
The rate on the 30-year loan has been below 4 percent since December 2011. Industry analysts cite the low rates as a reason the housing market is showing some signs of life.
However, the pace of home sales is far from healthy. Economists caution it could be years before the market fully recovers.
Mortgage rates have been slipping because they tend to move in tandem with the yield on the 10-year Treasury note. The uncertainty over the ongoing and mounting eurozone debt crisis has moved investors more into treasuries. Treasury securities are considered safe haven investments, so as demand for them increases the yield falls.
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