Mortgage Rates Increase Leading to Lower Mortgage Activity
by STAFF WRITER Published November 18, 2010 Credit Unions Online
Freddie Mac's Primary Mortgage Market Survey (PMMS) indicates average 30 year fixed rate mortgages bumped up to 4.39 percent. This is an increase from last week's 4.17 percent. The 15 year fixed rate mortgage average dropped to 3.76 percent from last week's 3.57 percent.
The Mortgage Bankers Association said that mortgage applications fell by 5 percent last week. Refinance applications also fell 16.5 percent. The mortgage rates increase is blamed on an increase in Treasury yields, which climbed to their highest level since July. Mortgage rates typically follow Treasury yield trends.
Even with this jump in mortgage rates, they still remain well below 5 percent and make homes more affordable. If you are about to enter the market for your first home or moving up to a bigger home, these rates are still a great way to finance your mortgage for 15 or 30 years and enjoy these low rates for many years to come. Stop by or call your local credit union to beging your mortgage application or to ask about refinancing an existing mortgage with a higher interest rate.