After 7 months of falling mortgage interest rates, the average rate on a 30-year fixed-rate mortgage has climbed up to the highest point of 5.59% as Freddie Mac reported on Thursday, June 11, 2009. This is a steep increase from 5.29% the previous week.
Last year the mortgage interest rate averaged 6.32% and has never been higher than that ever since the week of November which was 5.97%. The reason for the mortgage rates increase is the increase of bond yields this week as last month (May) the employment report showed lesser job loss than what the market had expected before.
The mortgage rates on 15-year fixed-rate mortgages also rose and averaged at 5.06% from 4.79% last week. This type of mortgage averaged 5.93% last year and it hasn’t been higher than that since last Decemer 2009 which averaged 5.20%.
Despite the higher mortgages rates, demands for home purchases has not slowed down although it has slowed down the refinancing activity.
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