Boston mortgage loan rates up over 5% during first week of February
Feb 2011 10

Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) which shows long- and short-term rates rising this week.

The 30-year fixed-rate mortgage loan (FRM) averaged 5.05 percent with an average 0.7 point for the week ending February 10, 2011, up from last week when it averaged 4.81 percent.

Last year at this time, the 30-year FRM averaged 4.97 percent.

Rates are at their highest since April 2010.

According to comments attributed to Frank Nothaft, vice president and chief economist, Freddie Mac, “Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week.

“For all of 2010, non-farm productivity rose 3.6 percent, the most since 2002, while January’s unemployment rate unexpectedly fell from 9.4 percent to 9.0 percent. Moreover, the service industry expanded in January at the fastest pace since August 2005.

“As a result, interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010.”

Rates are still at historic lows, just not as historic as before.

A 5% rate on a $400,000 mortgage loan would cost you approximately $2,147 per month. At 6%, it would be about $2,400 and at 4% it would be $1,909. So, about a $250 difference, in either direction.

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