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Mortgage rates edge higher; 30-year at 3.41%, Freddie Mac says

October 25, 2012|By E. Scott Reckard
  • Freddie Mac says mortgage rates edged higher this week.
Freddie Mac says mortgage rates edged higher this week. (Freddie Mac )

Mortgage rates edged higher early this week from their recent record lows, with the average interest on a 30-year fixed-rate loan rising from 3.37% last week to 3.41%, Freddie Mac’s latest survey showed.

Rates on 15-year fixed home loans averaged 2.72%, up from 2.66%, according to the survey released Thursday morning. It is based on what mortgage lenders say they are offering to solid borrowers with 20% down payments.

Rock-bottom rates are supporting the recovering housing market and a big wave of refinance mortgages.

A $300,000 30-year mortgage at 5.5%, a common rate in late 2008, requires monthly payments of $1,703.37. The monthly payment on the same loan at 3.375%, a typical rate these days, would be $1,326.29.

Freddie Mac's survey assumes a low level of fees and discount points paid to the lender – in the latest survey, an average of 0.7% of the loan balance on the 30-year mortgage and 0.6% on the 15-year.

Solid borrowers who shop around can often find slightly better rates, and many pay additional points upfront to lower their rates. The survey excludes additional costs for such third-party services as appraisals and title insurance.

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