Mortgage rates rose again following the increases in Treasury yields, inching up to a national average of 4.8 percent last week.
Freddie Mac today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 4.8 percent with an average 0.7 point for the week ending January 27, 2011, up from last week when it averaged 4.74 percent. Last year at this time, the 30-year FRM averaged 4.98 percent.
Rates haven’t been this high since May, and forecasters now predict them to remain between 5 and 6 percent for all of 2011. The increase will push mortgage payments higher for Marin homebuyers. For example, when rates rise from 4.25 to 5 percent it takes away about 9 percent of buying power on average.
Primary Mortgage Market Survey [Freddie Mac]