Rates rise, but remain near lows

Mortgage rates took a big tick upwards this week, but those moving into new homes could still do so with an affordable mortgage.

Freddie Mac reported that interest rates on 15- and 30-year fixed-rate mortgages experienced the most dramatic increases. Rates on 30-year loans rose from 4.17 percent last week to 4.39 percent this week, while 15-year FRMs climbed from 3.57 percent to 3.76 percent. Though both mortgage types experienced significant increases, each remains well below levels from a year ago. For instance, 30-year mortgages at this time a year ago averaged a rate of 4.83 percent, while 15-year loans averaged 4.32 percent.

Experts with Freddie Mac added that rising rates haven't discounted the recently improved outlook for those moving into new homes.

"The housing market is showing some potential gains as well. Although new construction on one-family homes dipped 1.1 percent in October, homebuilder confidence rose in November to the strongest level since June," said Freddie Mac vice president Frank Nothaft, citing data from the National Association of Home Builders.

More relocating families are also using fixed-rate mortgages when buying their homes. A report from the Mortgage Bankers Association noted a significant rise in borrowers using fixed-rate loans or mortgages backed by the Federal Housing Administration.
 

More News