Average long-term U.S. mortgage rates fell this week and remain at historically low levels, just as the Federal Reserve prepares to raise its main borrowing rate later this month.
The average rate on a 30-year loan declined to 3.76% this week from 3.89% last week, mortgage buyer Freddie Mac reported Thursday. A year ago, the long-term rate was 3.02%.
Chair Jerome Powell said Wednesday that he supports a traditional quarter-point increase in the Federal Reserve’s benchmark short-term interest rate when the Fed meets later this month, rather than a larger increase that some of its policymakers have proposed.
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