Freddie Mac says mortgage rates have remained relatively close to record lows, despite continued increases on some loan types, creating continued affordability conditions for those looking to purchase homes for sale across the country.
According to its survey for the week ending November 4, the average rate on a 30-year fixed-rate mortgage increased for the third consecutive week, pushing to 4.24 percent, up from 4.23 percent the week before and an all-time low of 4.19 percent just a few weeks ago. But as 30-year loans increased, interest rates for 15-year fixed-rate loans dropped, falling to 3.63 percent from 3.66 percent the week before.
"With little sign of inflation to push up long-term interest rates, fixed mortgage rates held relatively steady this week," said Frank Nothaft, vice president and chief economist for Freddie Mac.
Regardless of the small increase in 30-year loans, rates remained well below normal levels. One year ago, the average interest rate was 4.98 percent.
However, those rates may not be here to stay. In the National Association of Realtors' pending home sales report, chief economist Lawrence Yun said that interest rates could increase back to 4.9 percent by next year, and rise as high as 5.8 percent by 2012.