For the fourth straight week, we have seen an increase in the 30 year fixed rate and it took rates up 17 basis points and back up above 5% for the first time since the first of the year. Also interesting, it is the very first time since we started tracking this historic interest rate roller coaster that rates have increased four weeks in a row. As of this morning, the average overnight rate for a 30 year fixed rate sits at 5.06% up from the 4.89% we were at a week ago. Remember this is the average overnight rate and those with good credit will still be able to lock in rates below these averages.
The benchmark 15 year fixed rate also increased last week to 4.32% from 4.15% while the benchmark 5/1 adjustable rate mortgage moved to the upside to 3.63% from 3.48% the previous week.
Last weeks moves bring rates back to where they were the first of May, 2010 and what a wild ride that has been. Most of the increase in rates is being caused by optimism in the continued recovery of the overall economy with news out this week of declining unemployment (down 0.4% to 9%). While it is hard to jump for joy with this kind of news it has caused investors to move money from the bond market into stocks and rates have suffered. I still believe that rates need to stay in the 5%+/- range for us to continue working through the foreclosure inventory so we’ll keep our eyes on this very important metric on a weekly basis for our readers.
We take great pride here at “Results Driven Real Estate” in providing our clients the very highest level of service available in the industry. If we can be of assistance in any way with questions you may have about your real estate goals please feel free to contact me at your convenience for a complimentary consultation.
Always at Your Service,
Tom Priester e-PRO
“Results Driven Real Estate”
Keller Williams Realty