While mortgage closing costs are on the decline, actual mortgage rates are on the increase. For the first time in over three months, the rate for a 30-year fixed rate mortgage rose to 3.55%, up from last week’s 3.49%. These are the lowest rates since the 1950’s, when long-term mortgages were first introduced. These historic low mortgage rates are a big factor in the slow stabilization of the housing market. Home prices, in general, are on the rise, and builders are beginning to see an increase in demand for new homes. The low rates also encourage more existing homeowners to refinance, ultimately meaning they will have more money to spend. The rise in mortgage rates came from a combination of recent news of Eurozone debt relief and “mixed domestic indicators” such as sluggish employment news and slow economic activity.
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