A for sale sign stands in front of a house, Tuesday, Oct. 6, 2020, in Westwood, Mass. On Thursday, Nov. 12, U.S. long-term mortgage rates rose this week. They remain at historically low levels, now around a percentage point below a year ago. (AP Photo/Steven Senne)WASHINGTON (AP) — U.S. long-term mortgage rates rose this week. They remain at historically low levels, now around a percentage point below a year ago.
Mortgage buyer Freddie Mac reported Wednesday that the average rate on the 30-year benchmark loan increased to 2.84% from 2.78% from last week. By contrast, the rate averaged 3.75% a year ago.
The average rate on the 15-year fixed-rate mortgage edged up to 2.34% from 2.32%.
Breaking their downward trend through most of this year, mortgage rates were bolstered by the news Monday that a COVID-19 vaccine may be 90% effective, based on early and incomplete test results.
The vaccine announcement came two days after Joe Biden became president-elect upon defeating President Donald Trump by crossing the winning threshold of 270 Electoral College votes with a win in Pennsylvania.
The historically low borrowing rates have bolstered demand from prospective homebuyers. Demand for homes has remained strong despite a brief slowdown in the early days of the coronavirus pandemic, but at the same time the rise in home prices has stretched the limits of affordability for many would-be buyers.
The government reported Wednesday that the number of Americans seeking unemployment benefits fell last week to 709,000, a still-high level but the lowest figure since March and a further sign that the job market might be slowly healing.
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This story has been updated to correct the day of the week that the reports were issued. It was Wednesday, not Thursday.
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