Google reports slow ad growth, increased expenses

Google’s third-quarter revenue grew 20 percent, slightly below Wall Street expectations, as growth slowed in the Internet company’s total number of money-making ads and expenses increased.

Shares of Google were down 2.7 percent at $510.11 in extended trading on Thursday.

Google posted $16.52 billion in revenue for the three months ended Sept. 30, compared with $13.75 billion in the year-ago period. Analysts polled by Thomson Reuters I/B/E/S were looking for revenue of $16.57 billion in the latest quarter.

Google’s total number of ads, or paid clicks, expanded by 17 percent year-over-year in the third quarter. That was down from the 25 percent growth rate that Google delivered in the second quarter.

Google’s online advertising rates, which have been in a multi-year decline, moderated slightly in the third quarter, declining 2 percent year-over-year, compared to the 6 percent decline posted in the second quarter.

— Reuters

Mortgage rates fall to lowest level since June 2013

Average U.S. mortgage rates tumbled this week. The 30-year loan hit its lowest level since June 2013 as Treasury bond yields marked new lows amid concern over global economic weakness.

It was the fourth straight week of declines for mortgage rates, making it more affordable to borrow to buy a home.

Mortgage company Freddie Mac said Thursday that the nationwide average for a 30-year loan dipped to 3.97 percent from 4.12 percent last week. The average for a 15-year mortgage, a popular choice for people who are refinancing, fell to 3.18 percent from 3.30 percent.

Mortgage rates often follow the yield on the 10-year Treasury note. The 10-year note traded at 2.13 percent Wednesday, down from 2.34 percent a week earlier. It traded at 2.11 percent Thursday morning. Bond yields rise when bond prices fall.

Treasury yields have dropped sharply on expectations that the world’s economic sluggishness could force the Federal Reserve to delay interest rate increases.

— Associated Press

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