Fixed rate mortgage loans bump up to 4.6% in latest national survey
Jul 2011 07

Fixed rate mortgage loan rates rose just a bit, during the past week.

The average 30-year, fixed mortgage rate rose to 4.60%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.60 percent with an average 0.7 point for the week ending July 7, up from 4.51 percent, last week. Last year at this time, the 30-year FRM averaged 4.57 percent, so rates are actually higher, although the spread is very small. Fortunately, for buyers, home prices haven’t gone up pretty much anywhere in the country, and probably went down, meaning buyers can get more home for the same money.

A $400,000, 30-year, fixed-rate mortgage at 4.60 percent would run you approximately $2,051 per month in loan repayments. This is up from $2,029, last week, $22 per month more, and $8 more per month compared to last year, when it would have cost you $2,043 per month.

Frank Nothaft, vice president and chief economist at Freddie Mac says,”Mortgage rates followed Treasury yields higher over the holiday week but remain quite affordable by historical standards. For instance, interest rates on all mortgages outstanding in the first quarter of this year averaged just under 6 percent. With today’s rates, these homeowners who have the ability to refinance could shave $169 per month in interest payments on a $200,000, 30-year fixed mortgage.”

I hope that Freddie Mac’s economist isn’t the kind of guy who spins the news in a positive way, regardless of trends. He’s right, rates are lower than before, but rising interest rates are what most people are scared about.

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