mortgage rate 3

Average long-term U.S mortgage rates declined after two straight weeks of sharp increases.Mortgage giant Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage slipped to 3.97 per cent from 3.98 per cent a week earlier. The key 30-year rate was close to its level of a year ago, 3.99 per cent.

The rate on 15-year fixed-rate mortgages declined to 3.18 per cent from 3.20 per cent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.98%, down from 3.03%, and the 1-year Treasury-indexed ARM averaged 2.64%, down from 2.65%.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 per cent of the loan amount.

The average fee for a 30-year mortgage was unchanged from last week at 0.6 point. The fee for a 15-year loan declined to 0.5 point from 0.6 point.

The average rate on five-year adjustable-rate mortgages dipped to 2.98 per cent from 3.03 per cent; the fee rose to 0.5 point from 0.4 point. The average rate on one-year ARMs edged down to 2.64 per cent from 2.65 per cent; the fee increased to 0.3 point from 0.2 point.