Mortgage loan rates nudge up a bit, now at 4.91%
Apr 2011 14

The average 30-year, fixed mortgage rate continued its upward rise during the past week, up from 4.87% on a national basis to 4.91%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.91 percent with an average 0.6 point for the week ending April 7, 2011, up from last week when it averaged 4.87 percent. Last year at this time, the 30-year FRM averaged 5.07 percent, so good news.

A $400,000, 30-year, fixed-rate mortgage at 4.91 percent would run you approximately $2,125 per month in loan repayments. This is $9 more per month when compared to last week but $39 in savings compared to last year.

This week, 15-year fixed rate mortgages averaged 4.13 percent with an average 0.7 point, up from last week when it averaged 4.10 percent. A year ago at this time, the 15-year FRM averaged 4.40 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac says, ““Mortgage rates edged up following a light week of economic data releases. Although rates on 30-year fixed mortgages have risen four weeks in a row, they have remained below 5 percent for eight straight weeks now, helping to maintain affordability in the housing market. Meanwhile, consumer purchases of retail goods rose for the ninth consecutive month in March, suggesting families have an increasing capacity to spend, which bodes well for the economic recovery.

“Reinforcing this notion, the Federal Reserve reported in its April 13th regional economic review that consumer spending picked up modestly in February and March across most Districts. In addition, it noted that economic activity generally continued to improve and that reports focusing on the near-term outlook were most often upbeat.”

Similar to what I asked last week, will the uptick in consumer spending lead to higher rates for home mortgage loans? If rates go over 5%, they’re still at “historic” lows; will buyers be more cautious?

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