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Average on 30-year US mortgage rises to 3.42 pct.

Published on NewsOK Modified: May 9, 2013 at 11:58 am •  Published: May 9, 2013
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WASHINGTON (AP) — Average U.S. mortgage rates rose this week but remained near historic lows. Cheaper mortgages have encouraged more home buying and refinancing.

Mortgage buyer Freddie Mac said Thursday that the average rate for the 30-year fixed mortgage edged up to 3.42 percent from 3.35 percent last week. That's still near the average of 3.31 percent reached in November, the lowest on records dating to 1971.

The average on the 15-year fixed-rate loan rose to 2.61 percent from 2.56 percent last week, which was the lowest on records going back to 1991.

Low mortgage rates have buttressed the housing recovery that began last year. Home sales and construction are up from a year ago, and prices are rising in most U.S. markets.

A survey released Tuesday showed that U.S. home prices rose 10.5 percent in March compared with a year earlier, the biggest year-over-year gain since March 2006.

The survey from Core Logic, a real estate data provider, showed that year-over-year prices have risen for 13 straight months. Prices are rising in part because more buyers are bidding on a limited supply of homes for sale.

Prices rose in 46 states over the past year. Eleven states posted double-digit gains.

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