Mortgage Rates Highest Since August
Rates on 30-year fixed-rate mortgages averaged 4.39 percent, up dramatically from last week's 4.17 percent, according to Freddie Mac's primary mortgage market survey. The rate for 15-year fixed-rate mortgages ballooned to 3.76 percent, up from 3.57 percent last week.
Analysts are citing the announcement of the government's second quantitative easing (QE2) plan, a bid to purchase $600 billion in government bonds, as the principal reason for the jump. But despite the sudden uptick, mortgage rates remain highly competitive and should not dissuade prospective buyers from moving forward. Last year, 30-year fixed-rate mortgages averaged 4.83 percent.
For more insights on mortgages and refinancing see these AOL Real Estateguides:
- Mortgage Jargon in Simple Terms
- Refinancing Do's and Don'ts
- Time to Refinance? 4 Questions to Ask
- Four Ways to Benefit From a Cash-In Refinance
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