Long-term U.S. mortgage rates fell

Long-term U.S. mortgage rates fell this week for the second week in a row, despite the Federal Reserve's efforts to lift borrowing costs.

Mortgage buyer Freddie Mac says the rate on 30-year, fixed-rate mortgages slid to 3.92 percent from 3.96 percent the previous week. While historically low, that is still above last year's average of 3.65 percent.

The rate on 15-year, fixed-rate home loans, popular with homeowners who are refinancing their mortgages, eased to 3.2 percent from 3.23 percent last week.

Mortgage rates haven't increased much even though the Federal Reserve has boosted its benchmark rate four times in the past 18 months. That's because mortgage rates follow the yield on the 10-year Treasury note, which is influenced by many factors. Greater demand by overseas investors can lower the yield.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday 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 slipped to 0.5 point from 0.6 point last week. The fee on 15-year loans was unchanged at 0.5 point.

Rates on adjustable five-year loans dipped to 3.18 percent from 3.21 percent last week. The fee held steady at 0.5 point.

More people are renting!

WASHINGTON–More people are renting than at any other point in the past 50 years.

In 2016, 36.6% of household heads rented their home, close to the 1965 number of 37%, according to a new report by the Pew Research Center that is based on Census Bureau data.

Pew reported the total number of U.S. households grew by 7.6 million over the past decade, but the number of households headed by owners remained relatively flat, while households headed by renters grew by nearly 10% during the same time period.

Richard Fry, a senior researcher at Pew and one of the report's authors, cited rising home prices, lingering fears from the housing crash, and large amounts of student debt as some of the reasons why many Americans are renting rather than buying.

Perhaps not surprisingly, Millennials (those age 35 and younger) continue to be the most likely of all age groups to rent, Pew found. In 2016, 65% of households headed by young adults were renting, up eight percentage points from 2006.