Long-term borrowing costs remain historically low, but mortgage rates rose slightly in the final week of 2014.
Freddie Mac says a 30-year fixed-rate mortgage for borrowers with excellent credit averaged 3.87 percent this week, up from 3.83 percent last week. Thirty-year rates remain near a 19 month low. A year ago, a 30-year mortgage rate averaged 4.53 percent.
A 15-year fix averaged 3.15 percent this week, up from 3.10 percent. A one-year adjustable-rate mortgage averaged 2.40 percent, up from 2.39 percent.
Despite the late-year drop in rates, long-term rates were elevated in 2014, compared to post-recession averages.
“Looking at full-year data, the 30-year fixed-rate average for 2014 was 4.17 percent, the highest annual average since 2011,” says Freddie Mac (OTC: FMCC) chief economist Frank Nothaft.
A separate report Wednesday from the National Association of Realtors said pending sales of existing homes, or contracts signed to buy but deals not yet closed, rose 0.8 percent in November. Pending sales remained above year-ago levels for the third consecutive month.
