While remaining close to its historic low, the average rate on fixed mortgages increased this week, Freddie Mac announced Thursday.
According to the mortgage giant, the average rate for the 30-year fixed load rose to 3.57% from 3.54% last week; close to the 3.31% reached in November, which was the lowest on records dating to 1971.
The low rates on the fixed mortgages have been fueling the housing market's current recovery.
The average rate on the 15-year fixed mortgage climbed last week to 2.76% from 2.72% last week. The record low of 2.63% was also reached in November.
The lowest mortgage rates in decades are spurring more home purchases and refinancing. That's helped the broader economy. Increased sales are also pushing home prices higher.
In February, sales of previously occupied homes rose to a seasonally adjusted pace of 4.98 million, the fastest in more than three years. And U.S. home prices rose 8.1% in January, the fastest annual rate since the peak of the housing boom in the summer of 2006.
Fewer people signed contracts to buy homes in February. But the level stayed near a three-year high, leading many analysts to predict re-sales will keep rising in the coming months. There's normally a one- to two-month delay between a signed contract and a completed sale.
One concern remains the limited number of available homes for sale. That could slow sales at the start of the all-important spring-buying season.
And some people are unable to take advantage of the low mortgage rates, either because they can't qualify for stricter lending rules or they lack the money for larger down payment requirements. First-time home buyers made up 30 percent of existing home sales in February, well below the 40% that is typical in a healthy market.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday 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 percent of the loan amount.
