WASHINGTON (AP) — Average U.S. rates for fixed mortgages crept higher this week but remained low
by historical standards.Mortgagebuyer Freddie Mac said Thursday that the rate on the 30-year loanincreased
to 4.48 percent from 4.47 percent last week. The average onthe 15-year fixed loan rose to 3.52 percent from
3.51 percent.Mortgagerates peaked at 4.6 percent in August on expectations that the FederalReserve would
reduce its $85 billion-a-month in bond purchases. Thosepurchases push mortgage and other long-term rates
lower and encourageborrowing and spending. On Dec. 18, the Fed finally decided the economywas strong enough
to allow it to reduce the monthly purchases by $10billion.Mortgage rates are sharply higher than they were a
yearago when the 30-year fixed rate was 3.35 percent and the 15-year was2.65 percent.The Commerce Department
reported Tuesday thatnew-home sales dipped 2.1 percent in November to a seasonally adjusted464,000. But
stronger figures for the previous three months suggestedthat housing may be regaining strength after a
summer lull.TheNational Association of Realtors said last week that the number ofpeople who bought existing
homes in November fell for a third straightmonth. Higher rates and the lingering effects of the partial
governmentshutdown in October may have deterred some sales.Still, thegovernment said builders broke ground
on homes at a seasonally adjustedannual rate of 1.09 million homes and apartments in November. That wasthe
fastest pace since February 2008 and was 23 percent higher than inOctober.To calculate average mortgage
rates, Freddie Mac surveyslenders across the country between Monday and Wednesday each week. Theaverage
doesn’t include extra fees, known as points, which mostborrowers must pay to get the lowest rates. One point
equals 1 percentof the loan amount.The average fee for a 30-year mortgage was 0.7 point. The fee for a
15-year loan was 0.7 point.Theaverage rate on a one-year adjustable-rate mortgage slipped to 2.56percent
from 2.57 percent last week. The fee was 0.5 point.The average rate on a five-year adjustable mortgage rose
to 3 percent from 2.96 percent. The fee was 0.4 point.Copyright 2013 The Associated Press. All
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