Mortgage rates rise for 3rd week

admin — Thu, 29 Oct 2009 13:00:00 +0000

It looks like there was a substantial rise on mortgages.I’m following it from Bankrate and learned it begins to rise up more in future.Like previously there was a claim that house and home price value will drop perhaps is not entirely true.Now, Mortgage rates rose for the third week in a row, amid evidence that house prices could be making a turnaround. However, it was only a prediction no more than that.But the possibility is there without doubt.

The benchmark 30-year, fixed-rate mortgage rose 1 basis point to 5.35 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week’s survey had an average total of 0.37 discount and origination points. One year ago, the mortgage index was 6.77 percent (the highest rate of 2008); four weeks ago, it was 5.25 percent.

The benchmark 15-year, fixed-rate mortgage rose 2 basis points to 4.74 percent. The benchmark 5/1 adjustable-rate mortgage dipped 5 basis points to 4.64 percent.

Although the 30-year fixed has gone up three consecutive weeks, the increases haven’t been much. It’s probably not a coincidence that mortgage applications have fallen during that time, especially for refinances. The Mortgage Bankers Association says applications have fallen more than 25 percent in the past two weeks.

Via Bankrate

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Mortgage rates rise for 3rd week