Rates rise, but still near record lows

Though mortgage rates rose slightly this week, they still likely aren't high enough to deter relocating activity.

According to Bankrate.com's weekly national survey, the average conforming rate on a 30-year fixed-rate mortgage rose from 4.53 to 4.58 pecrent over the past week. Additionally, 15-year fixed-rate mortgages inched higher, climbing to 4.06 percent from 4.05 percent the week before.

Rates on adjustable-rate mortgages increased as well, with five-year ARMs rising from 3.86 to 3.91 percent and seven-year ARMs climbing to 4.17 percent, said the report.

Rising mortgage rates were tied to a better-than-expected economic outlook, said Bankrate.com. Buoyed by positive reports, investors traded riskier assets and sold Treasury securities, which are closely related to mortgage rates. "The path of mortgage rates will be determined largely by investors' sentiment about whether the economy is getting better or worse, and will continue to yo-yo up and down amid conflicting economic readings."

Despite climbing slightly, rates remain near record lows, but homebuyer demand is still weak. Many of the nation's homebuilders are slowing their land purchases, reported the Wall Street Journal, because they say not enough people are moving to warrant the construction of many new homes.


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