Average US rate on 30-year mortgages rises to 3.95 percent

Mortgage buyer Freddie Mac said Thursday the average rate on a 30-year fixed-rate mortgage rose to 3.95 percent from 3.93 percent a week earlier. The average rate on 15-year fixed-rate mortgages increased to 3.19 percent from 3.16 percent.

The key 30-year rate was slightly above its level of a year ago, 3.93 percent. The rate has increased significantly overall since the end of October, when it stood at 3.76 percent.

An interest rate hike by the Fed, expected to come at its policymaking meeting next Tuesday and Wednesday, would be the central bank's first in nearly a decade. The rate has been held at a record low near zero for the past seven years.

The expectations of a Fed increase were bolstered by the release Friday of government data showing that the U.S. economy added 211,000 jobs in November, more than investors had expected.

The yield on the 10-year Treasury bond, which mortgage rates have been tracking, rose to 2.21 percent Wednesday from 2.18 percent a week earlier. Yields on the U.S. government bonds move in the opposite direction of the bonds' prices. The yield ticked up to 2.22 percent Thursday morning.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage was unchanged from last week at 0.6 point. The fee for a 15-year loan remained at 0.5 point.

The average rate on five-year adjustable-rate mortgages rose to 3.03 percent from 2.99 percent; the fee was unchanged at 0.5 point. The average rate on one-year ARMs increased to 2.64 percent from 2.61 percent; the fee declined to 0.2 point from 0.3 point.