Mortgage Interest rates Rise According to Freddie Mac; Today’s 30 Year Fixed Rate Mortgage Notes; Economic Data Improves Interest Rates Rise
Posted on | November 28, 2010 | No Comments
Interest rates have changed and edged up this past week. Mortgage interest rates are on the rise and many wonder if the improving economic picture will be enough to increase potentials for Americans to move forward with locking in the higher rates on a long term home loan. The Commerce Department and Labor Department released data last week that reveals an improving economic picture. Americans are earning and spending more and companies are shedding fewer workers.
According to the statistics posted by the Commerce Department, Americans’ incomes rose .5 percent in October. Also relayed by the Labor Department is that the pace of layoffs is slowing. Initial jobless claims dropped by 34,000 to a seasonally adjusted 407,000 in the week ending Nov. 20, 2010. Last week’s jobless figures were the lowest since July of 2008 and many experts believe that the numbers have to consistently fall below 425,000 to reveal meaningful job growth. So in a sector that is struggling, the housing sector, interest rate hikes will now have to be absorbed. Freddie Mac reports that the average rate for a 30-year fixed rate mortgage rose to 4.40 percent up from 4.39 percent last week. The 15-year loan also increased from 3.76 percent to 3.77 percent. The increase is slight, but still further away from the recent levels that were the lowest in the past several decades.
Author: Stephen Johnson