Mortgage Rates Increase, Mortgage Applications Decrease, 30 Year Rates Near 5.00%

Mortgage rates are higher and applications for mortgage loans declined in the latest mortgage survey. After four consecutive weeks of increases, 30  year rates are almost back at 5.00 percent. In the Weekly Mortgage Application Survey released by the Mortgage Bankers Association, the average contract rate on 30 year mortgages is 4.98 percent with 0.93 points. 30 year rates increased from the previous week’s average of 4.93 percent with 0.69 points.

The average contract rate on 15 year mortgages also increased for the week ending April 8, 2011. 15 year rates are at 4.17 percent with 1.22 points, up from the previous week's average rate of 4.14 percent with 1.09 points.

Higher mortgage rates brought out fewer buyers applying for home loans. The MBA's Purchase Index declined 4.7 percent from one week earlier. Higher rates also mean fewer home owners have an incentive to refinance their loans. The Refinance Index declined 7.7 percent and is at the lowest point since February 2011.

Interest rates have been low for so long every home owner who was "in the money" and could refinance has probably already done so. If you haven't refinanced yet, you should do it now because rates are going higher.

Author: Robert Till
April 13th, 2011

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