Another quick post:
Freddie Mac released its weekly mortgage rates survey today, and found that mortgage rates are at their highest point since last May (despite this increase in rates, Total Mortgage still has amongst the lowest rates in the industry, click here for a complete listing of our rates).
The average rate on a 30 year fixed rate mortgage rose from 4.61 percent to 4.83 percent last week. This is a huge jump from 4.17 percent just five weeks prior. The average rate on a 15 year fixed rate mortgage rose from 3.96 percent to 4.17 percent. Frank Noraft, chief economist for Freddie Mac commented:
“Market concerns over stronger economic growth that, in the near term, could lead to an increase in inflation have sparked a rise in bond yields and mortgage rates have followed.”
Despite this, Noraft still feels that rates on 30 year fixed mortgages will stay below 5% throughout 2011:
“While some rise in fixed-rates is expected, 30-year fixed rate loans are likely to remain below 5% throughout the year, and initial rates on 5/1 hybrid ARMs will likely remain below 4% in 2011″.
While rates are increasing, they are still somewhat below where they were at the beginning of the year (5.09% on a 30-year fixed loan during the first week of January 2010).
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