Average US rate on 30-year mortgage eases to 3.93 percent

WASHINGTON (AP) — Average long-term U.S. mortgage rates edged lower this week, with the key 30-year loan rate remaining under 4 percent.

Mortgage giant Freddie Mac said today the average rate on a 30-year fixed-rate mortgage ticked down to 3.93 percent from 3.94 percent a week earlier. A year ago, the average rate was 4.10 percent.

The rate on 15-year fixed-rate mortgages eased this week to 3.15 percent from 3.17 percent.

Investors and financial experts are watching for an anticipated interest-rate increase by the Federal Reserve next month, which could bring higher rates for home loans. The Fed has kept its key short-term rate near zero since the financial crisis year 2008.

With mortgage rates at historically low levels and job growth steady, Americans stepped up their home-buying for a third straight month in July. Data issued Thursday by the National Association of Realtors showed home sales accelerating last month to the strongest pace in eight years.

The spike in home sales has come as more current homeowners have returned to the real estate market for an upgrade or to downsize as they approach retirement.