Freddie Mac: Mortgage rates hold steady; 30-year averaging 4.12%

Mortgage rates are moving fast in one direction this summer -- sideways.

Freddie Mac’s weekly survey, out Thursday, showed the average rate for a 30-year fixed-rate home loan was 4.12%, practically unchanged from last week’s 4.13%.

At that rate, a borrower with a $300,000 mortgage would have to pay $1,454 a month in principal and interest.

In the month before the latest surveys, Freddie reported the following averages for the 30-year loan, the most widely used home-financing option: 4.13%, 4.15%, 4.12% and 4.14%.

The survey by the government-sponsored mortgage finance firm asks lenders about the terms they are offering to low-risk borrowers who pay less than 1% of the loan amount in upfront fees and discount points.

The 30-year average edged above 4.5% back in January. It hit 4.2% once in June, but has not been above that level since May.

Lenders told Freddie Mac they were offering 15-year fixed loans this week at an average of 3.23%, down from 3.26%. Start rates on adjustable loans also were little changed.

Where are the rates headed next? The yield on the 10-year Treasury note is a common proxy. It shot higher on Wednesday afternoon, right after Freddie Mac wrapped up this week’s survey, in reaction to a report that the economy expanded 4% in the second quarter.

@ScottReckard watches mortgage trends for the L.A. Times