30-year mortgage rates on the rise

Interest rates have been all across the board in recent weeks, but for the most part, they seem to be going up. This trend look like it will continue for a while, at least until the Federal Reserve decides to stop upping them. These rising interest rates have a direct affect on mortgages. Since every time interest rates go up, so do the monthly payment prices. This can make it increasingly difficult for people to make their monthly mortgage payments, causing increased foreclosures. There are many different types of mortgage plans and one of the most popular is the 30-year mortgage. This is also the type that saw an increase in rates recently.

The article, “Rates on 30-year mortgages edge up,” by Martin Crustinger of the Associated Press gives the details on the figures. The article was also featured on Topix.net’s mortgage news site.

“Rates on 30-year mortgages rose this week to the highest level since the spring of 2002. Freddie Mac, the mortgage company, reported Thursday that rates on 30-year, fixed-rate mortgages increased to a nationwide average of 6.80 percent, up from 6.74 percent last week. The increase pushed 30-year rates to the highest level since they stood at 6.81 percent the week of May 24, 2002,” according to the article.

The real estate market has been suffering lately, partly due to the constant increase in interest rates. More people are putting up their homes for sale and more people are finding it increasingly difficult to make their monthly payments. With interest rates rising, this problem will probably not get any better any time soon.

“The lowest mortgage rates in four decades powered a boom in housing which pushed sales of both new and existing homes to record levels for five consecutive years. But sales have slowed this year as mortgage rates have been rising. The rise in mortgage rates this week was blamed in part on further increases in inflation, including a 0.3 percent increase in core inflation as measured by the consumer price index, which was reported on Wednesday.”

The 30-year mortgage was not the only type of mortgage that seems to have increasing rate as of lately.

“Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, increased to 6.41 percent, up from 6.37 percent last week. Rates on one-year adjustable rate mortgages rose to 5.80 percent, up from 5.75 percent last week. Rates on five-year adjustable-rate mortgages rose to 6.36 percent, up from 6.33 percent last week.”

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