For the fourth week in a row, mortgage interest rates have risen. The average rate on a 30-year fixed mortgage jumped to 4.61 percent (0.7 point) for the week ending December 9, 2010.
The rise is up from last week’s average of 4.46 percent. If the rise does continue at this pace, the 30-year rate could rise above where it was a full year ago (4.81 percent) in a matter of mere weeks.
Unfortunately, refinance applications have decreased after the sudden change in rates after a 50 year low. the sudden change in direction has already dampened demand for mortgage refinancing. Refinance rates are at a low since June.
A major concern is the affect this could have on home purchases, which are beginning to show some signs of vibrancy.
Freddie Mac’s study, which is based on data gathered from about 125 lenders across the country, tracked a rise in rates across the board.
The message here is that there really are great deals out there and with rates still so low, the time to invest in real estate is now. It is still affordable with low prices and low rates. If you aren’t invested in real estate, don’t miss this market.
Contact me to find out the latest rate information and about my hot deal of the week.