Rates for Home Loans Rise

By · October 26, 2012 · Filed in Freddie Mac Rate Survey

As expected interest rates on home loans rose slightly higher this week. Freddie Mac’s weekly survey revealed the minor uptick for higher rates on government and conventional mortgages. The Lead Planet staff expects rates to remain near record levels for the next eighteen to twenty-four months. Typically “bad news” with regards to the economy usually translates to “good news for interest rates in the United States.

The average on fixed 30-year rates increased to 3.41%, up from 3.37% a week ago but down from 4.10% a year ago at this time. The average on fixed 15-year rates rose as well. The 15-year mortgage inched up to 2.72% from 2.66% a week ago.

Hybrid loans that featured adjustable interest rates were mixed. The 5-year ARM remained the same as last week at 2.75%, while the 1-year ARM rose down to 2.59% from 2.60% a week ago. The volume for home loans with no credit check has increased online in recent months as well.

The activity for home refinancing remains robust as more and more homeowners continue to complete applications. Home purchase activity has dipped a bit, but there is still a healthy amount of activity for consumers seeking home financing. Although the refinance share of mortgage continued to fall, it still accounts for 8% of applications. The Mortgage Bankers Association said they anticipate refinancing volumes to level off and home buying activity will rise in 2013.

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