Freddie Mac: Mortgage rates inch higher

Freddie Mac’s latest survey shows fixed mortgage rates inched higher this week, with lenders offering 30-year loans to solid borrowers at an average 3.90%, up from 3.88% a week ago.

The rate for 15-year loans rose from 3.11% to 3.13%. Borrowers would have paid about 0.75% of the loan amount in upfront lender fees to obtain the loans, Freddie Mac said.

The weekly survey of lenders assumes that the borrowers have good credit and 20% down payments, or 20% home equity if they are refinancing. The survey covers loans of up to $417,000.

Freddie Mac’s chief economist, Frank Nothaft, said the rates, just above recent all-time lows, reflected the fact that inflation remains in check.

“Industrial production was flat in March, a reading below the market consensus forecast,” Nothaft said. “Meanwhile, both headline inflation gauges [the consumer and producer price indexes] for March were in line with market expectations.”

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