Mortgage Rates Rise Again

Posted on Jul 08, 2011

The average rate on a 30-year fixed rate mortgage loan jumped from 4.51% to 4.60% this week, according to mortgage giant Freddie Mac. Only three weeks ago the rates dipped to the lowest rate seen this year, coming in at 4.49%.

However, low interest rates and home prices that continue to spiral downward have done very little to help the struggling real estate market, as high unemployment and tight lending standards have kept potential homebuyers on the sidelines.

Mortgage rates tend to follow long term Treasury notes, which have been rising and are likely to continue to rise since the FED $600 billion bond buying program has ended. Freddie Mac collects rates from lenders across the nation weekly, Monday through Wednesday and as the rates track long term Treasury notes they can change significantly, even on a given day.