Mortgage rates decline after sharp increase last week; still above 5 pct

Mortgage rates fall after rising 4 straight weeks

McLEAN, Va. — Rates for long-term mortgages dropped this week but still remained above 5 percent.

Mortgage financier Freddie Mac said Thursday that the average rate on a 30-year fixed rate mortgage was 5.07 percent this week, down from 5.21 percent a week earlier.

Last week’s average rate for a 30-year fixed mortgage had been the highest since mid-August, when it was 5.29 percent.

Rates had dropped to a record low of 4.71 percent in December, pushed down by a campaign by the Federal Reserve to reduce borrowing costs for consumers. The program ended at the end of March, but the Fed left the door open to reviving the program if the economy weakens.

Low rates make mortgages less expensive for homebuyers.