Mortgage rates level off, 30-year loan averages 4.23%

Mortgage interest rates have leveled off at their lowest levels since June, with 30-year fixed-rate loans averaging 4.23%.

The average rate for solid borrowers with a 15-year fixed mortgage is 3.31%.Freddie Mac pegged the 30-year average at 3.35% in early May. It shot up to 4.58% in August on widespread belief the Federal Reserve would taper off its efforts to keep interest rates low, then fell again when the Fed decided in September that the economy wasn’t strong enough for it to do so.

Borrowers would have paid lenders an average of 0.7% of the loan amount in fees and discount points to obtain the rate, according to the latest report, issued Thursday morning.  Appraisal costs and other third-party charges that borrowers often pay are not figured into the survey. 

(Source: LA Times)