Average mortgage rates in the United States are increasing slightly; 30 years at 2.87% | Business
WASHINGTON (AP) – Mortgage rates edged up last week, continuing a trend of little movement in recent weeks amid uncertainty over the effect of the coronavirus delta variant on the economic recovery.
Average mortgage rates remain historically low at less than 3%. Mortgage buyer Freddie Mac reported Thursday that the 30-year mortgage average climbed to 2.87% from 2.86% last week. The benchmark rate, which peaked this year at 3.18% in April, stood at 2.91% a year ago.
The rate on a 15-year loan, a popular option among homeowners refinancing their mortgages, rose to 2.17% from 2.16% last week.
Concerns are growing that the now dominant delta variant is starting to cause an economic slowdown, an uncertainty that has kept mortgage rates in a narrow band. In recent weeks, many economists have lowered their growth estimates for the U.S. economy for this quarter and for 2021 as a whole, as the variant has sent confirmed cases of COVID increasing across the country.
A government report on Thursday showed that U.S. gross domestic product – the total production of goods and services – grew at a robust annual rate of 6.6% in the April-June quarter, slightly faster than expected.
Meanwhile, the number of Americans claiming unemployment benefits increased for the first time in five weeks, even as the economy and labor market quickly recovered from the pandemic recession. Claims edged up 4,000 to 353,000 from a pandemic low of 349,000 a week earlier.
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