Wednesday, September 4, 2013 / by William Culp
Following a short-lived decline, mortgage rates are once again trending upwards. The rise in rates is a attributed to the release of a series of positive economic reports, including data that showed an increase in residential construction spending for the ninth consecutive month. Despite the rise in mortgage rates, which continue to inch toward their high points for the year, home loans remain relatively low by historical standards.
The average rate on a 30-year fixed mortgage loan increased by 0.06 percentage point this week, according to the latest survey by mortgage buyer Freddie Mac, climbing to 4.57 percent, up from 4.51 percent. It is now two weeks removed from hitting 4.58 percent, its highest level since July of 2011. A year ago, the 30-year fixed loan was trending at 3.55 percent.
This week’s average marks only the fourth time this year that the 30-year fixed has registered above 4.5 percent, which is a full percentage point higher than where it was trending in May. The rise has reduced affordability for some potential home buyers, as evidenced by a recent drop in home sales.
The average rate on a 15-year fixed loan continues to hover near its two-year high achieved in July of 2011. After remaining relatively unchanged through the first three weeks of August, it is on the rise in early September. The average on a 15-year fixed loan saw an increase of 0.05 percentage point over the last week, climbing to 3.59 percent, up from 3.54 percent. It is now more than a full percentage point higher than it was in early May, when it reached a historical low of 2.56 percent, and has seen an increase of 0.73 percentage point year-over-year.
Source: Realtor.com® Read more at: http://ow.ly/oCXfU