Benchmark mortgage rate rises in U.S. housing market

Source: Xinhua| 2019-10-18 12:51:15|Editor: Li Xia
Video PlayerClose

WASHINGTON, Oct. 17 (Xinhua) -- The mortgage rate rosed significantly in the United States last week, the U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Thursday.

For the week ending Thursday, the 30-year fixed-rate mortgage (FRM) in the United States increased to 3.69 percent from the previous week's 3.57 percent.

However, the benchmark 30-year FRM was still significantly lower than that in the previous year, when it averaged 4.85 percent.

Besides, Freddie Mac noted that the 15-year FRM edged down to 3.15 percent, compared with 3.05 percent for the previous week and 4.26 percent for the same period a year ago.

"Despite this week's uptick in mortgage rates, the housing market remains on the upswing with improvement in construction and home sales," said Sam Khater, chief economist of Freddie Mac.

"While there has been a material weakness in manufacturing and consistent trade uncertainty, other economic trends like employment and homebuilder sentiment are encouraging," said Khater.

Freddie Mac is a corporation founded by U.S. Congress to promote the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. It has been conducting weekly surveys on U.S. mortgage rates since April 1971.