30 Yr Fixed Mortgage Rates Break 5 Percent Mark

After reaching record lows a few weeks ago, 30 Yr mortgage rates are again above the 5 percent level. This follows the steady gains which have been noted for the last month as mortgage rates steadily inched-up from the 4 percent mark.

30 Yr Fixed- mortgage rates were at 5.05 percent up from last week’s 4.94. This marks the first time in 2 months that 30 Yr FMR hovered above the 5 percent mark. Mortgage applications were also done mainly due to increasing mortgage rates seen in the past few weeks.

The last time mortgage rates were above the 5 percent level was on the last week of October, when they stood at 5.03. Interest rate hit a new record low of 4.71 on the first week of December but has since lost ground and steadily climbed over the past weeks.

“Although interest rates for 30-year fixed-rate mortgages are above 5 percent this week for the first time since the end of October, they are still around 0.5 percentage points below this year’s peak set in mid-June,” according to Frank Nothaft, Freddie Mac vice president and chief economist.

Rates on 15 Year FRM also gained a few basis points from last week. Average rates hiked from 4.38 percent to 4.45 in this week’s reports. Other plans also saw their averages rise this week, 5 year ARM’s were up at 4.4 percent from 4.37.

Mortgage applications

Applications for mortgage also dropped this November as concern over increasing mortgage rates dampened the home buyers market. Mortgage rates continue to be the most important factor for new homeowners planning to purchase a home or applying for refinancing.

Reports from the Mortgage Bankers Association said that applications fell by 12 percent compared to the previous week. Refinance applications also dropped by 10 percent with homeowners concerned about higher mortgage rates.

Mortgage rates and applications are often related with each other’s movement. Higher rates translate to lower applications and vice versa.

Reported by REOProteams

For more information on the latest and hottest deals or how we at REOProteams.com could help you please email us at info@REOproteams.com or visit us at www.reoproteams.com or LVbargainproperties.com