WASHINGTON – Mortgage rates rose for the first time this week after six weeks of decline as signs point to a stronger economic recovery.
However, average rates on home loans remain historically low – less than 3%.
Mortgage buyer Freddie Mac said Thursday that the average for a 30-year mortgage jumped to 2.87% from 2.77% last week. The base rate, which peaked this year at 3.18% in April, was 2.96% a year ago.
The rate on a 15-year loan, a popular mortgage refinancing option among homeowners, increased from 2.10% to 2.15%.
Uncertainty over the rapidly spreading variant of the delta coronavirus and its potential impact on economic recovery in recent weeks has been the backdrop for containing mortgage rates.
Worryingly, the resurgent virus could discourage people from going out and spending money and causing another round of blackouts or other restrictions.