Mortgage Rates Above 4 Percent For First Time Since October

• March 22, 2012
• 3 Comments

by Shilpi Paul

For the first time since October 2011, long-term mortgage rates are back above 4 percent.

This morning, Freddie Mac reported 4.08 percent with an average 0.8 point as the average on a 30-year fixed mortgage. In light of positive economic news, rates began to move back up last week, when they reached 3.92. Two weeks ago, average rates were at 3.88 percent.

From Freddie Mac vice president and chief economist Frank Nothaft:

Bond yields rose over the past two weeks in part due to an improving assessment of the state of the economy by the Federal Reserve, better than expected results of commercial bank stress tests and the likelihood of a second bailout for Greece. Meanwhile, consumers continued to reduce their debt burdens in the fourth quarter of 2011.

Here’s a look at the path of rates since last January:

This article originally published at http://dc.urbanturf.com/articles/blog/mortgage_rates_above_4_percent_for_the_first_time_since_october/5319

3 Comments

1. Fred S. said at 6:38 pm on Thursday March 22, 2012:
   It is irresponsible to say that rates are "way" up. At the beginning of the boom in 2001-2, they were in the 5.5-6% range, i.e. 30-40% higher than they are now. Looking back to the 90s, not so very long ago, they were double and more today's rates. Exaggerating is what got us the boom (and subsequent bust). When you editorialize, be responsible about it.

1. Amy said at 7:14 pm on Thursday March 22, 2012:
   @ Fred S. I kind of see your point, but to anyone who has been considering buying a home in recent months, the increase is significant. Still very low historically, though.

1. RC said at 7:49 pm on Thursday March 22, 2012:
   Given this week's news (global growth concerns out of China, renewed concern over Europe, and movement back into Treasuries by bond investors), look for rates to drop a bit next week. We're still locked in a fairly tight range, and the Fed is unlikely to let us move out of that range any time soon.