Mortgage Rates Inch Higher In Latest Mortgage Survey: Average 30 Year Mortgage Rates at 4.85%, Average 15 Year Mortgage Rates at 4.22

Mortgage rates were slightly higher in the last mortgage survey released this morning. Mortgage rates have increased considerably since the end of November. In the Mortgage Bankers Association's Weekly Mortgage Rate Survey the average contract mortgage rate on 30 year home mortgage loans increased to 4.85 percent for the week ending December 17, 2010, up from the previous week’s average year mortgage rate of 4.84 percent. 30 year mortgage rates have increased for six consecutive weeks. Average mortgage discount points on 30 year home mortgage loans decreased to 0.96 points, down from the prior week’s average of 1.33 points.

15 year home mortgage rates are up to 4.22 percent for the week ending December 17, 2010, up from the previous week’s average 15 year home mortgage rate of 4.21 percent. Two weeks ago 15 year mortgage rates were below 4.00 percent. Average mortgage discount points on 15 year home mortgage loans was 1.19 points, down from the previous week’s average of 1.28 points. 

Mortgage applications for home purchases and refinances decrease this time of year but the increase in mortgage rates has also dampened demand for mortgages. The MBA's Refinance Index, which is a measure of mortgage applications for home refinances, decreased 24.6 percent. The Refinance Index has declined six straight weeks and is at its lowest level since the week ending April 30, 2010. The Purchase Index, which is a measure of mortgage applications for home purchases, decreased 2.5 percent.