U.S. 30-year mortgage rates rose, increasing long-term borrowing costs as home values extend a recovery from a six-year slump.
The average rate for a 30-year fixed mortgage was 3.37 percent in the week ended today, up from 3.32 percent, McLean, Virginia-based Freddie Mac said in a statement. The average 15-year rate slipped to 2.65 percent from 2.66 percent.
Interest rates close to record lows are attracting buyers, while a shrinking supply of properties for sale bolsters prices. U.S. home values jumped about 6 percent this year, the first increase since 2006, according to Zillow Inc. Gains will probably continue in 2013, the Seattle-based home-listing service said today.
Permits to build new homes rose to a four-year high last month, the Commerce Department said yesterday.
The average 30-year mortgage rate dropped to a record 3.31 percent in November, according to Freddie Mac.