US long-term mortgage rates rise; 30-year at 2.96%

The average rate on the 15-year fixed-rate mortgage rose to 2.46% from 2.44% from last week.

Homebuying demand continues as one of few bright spots in the pandemic-struck economy, especially for prospective buyers considering a first-time purchase, Freddie Mac noted. Still the lack of available homes remains an obstacle.

Mortgage refinancing, which has boomed amid the record low interest rates this year, could cost many homeowners more because of a new fee announced Wednesday by Freddie Mac and its larger government-controlled sibling Fannie Mae. The new fee for lenders, equivalent to half a percent of the total home loan, is meant to provide a cushion for Fannie and Freddie against possible mortgage defaults in the severe economic downturn. Its likely to be passed on to homeowners and is expected to cost an average of around $1,400.

The fee was approved by the companies regulator, the Federal Housing Finance Agency. The fee will take effect Sept. 1 and apply to most mortgage refinances. Mortgage lenders objected; the Mortgage Bankers Association said it will increase interest rates for already struggling homeowners.