Mortgage rates have been rising since the beginning of September and are currently at an average of 4.65%, according to the MyBankTracker.com mortgage rate database. Although home loan rates have been on the rise they are still at one of their lowest levels in decades.
Mortgage securities firm Freddie Mac also noted a downward trend during the past week.
- Rates have decreased by 0.7% since Monday, but numbers for 30-year fixed-rate mortgages have consistently risen.
- At the beginning of September, the average 30-year fixed-rate mortgage was 4.59%. This was after the rate plunged to 4.22% in mid-June.
- MyBankTracker.com’s current national average for 30-year fixed-rate mortgages is up to 4.65%.
The economy’s recovery is progressing slowly. Jobless benefits claims have fallen in three of the past four weeks and August retail sales ticked upward. These figures did not have an impact on the housing market home sale figures have declined rapidly during the summer. Some investors may have viewed the improving economic outlook as good opportunity to put money back into the stock market, resulting in a bond market slump.
Mortgage and Foreclosure Figures
The Mortgage Bankers Association released figures this Wednesday showing mortgage loan applications decreased 8.9% from one week earlier. The figures were even adjusted to include the Labor Day holiday, otherwise applications would have decreased by 27.4%. The Refinance Index also decreased by 10.8% from the previous week. While these numbers decreased, another grew: August 2010 brought more foreclosures than any other month since the start of the mortgage meltdown in 2007, according to Realty Trac, Inc.
Freddie Mac also mentioned that 15-year fixed-rate home loans are still at record lows, which greatly benefits potential home buyers. Rates for 15-year fixed-rate loans are at their lowest level since 1991, down 0.01% from last week.