Mortgage loan rates rise during past week
Dec 2010 08

The Mortgage Bankers Association reports that average 30-year mortgage loan rates rose last week to 4.66 percent. The average contract interest rate increased for the fourth consecutive week and is at the highest level since July 2010. The effective rate also increased from last week. Rates are still lower than their two year average but higher from the all-time low, last October.

The Refinance Index decreased 1.4 percent from the previous week. This is the fourth weekly decrease for the Refinance Index which reached its lowest level since June 2010. Refinancing activity as a share of all loans increased to over 75 percent. Adjustable-rate mortgage loans made up less than six percent of new loans.

What the future holds is an open question. I suspect rates will stay low but at some point, all this borrowing by the government is sure to have an effect. You don’t need to be an economist to understand that.

The advantage of rates slowly creeping up (at least for me …) is that it may encourage some people to get off the fence and act, buying a home. “Rates will never be this low” has been the constant cry of agents across the country – and it’s actually probably true.

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