Mortgage Rates for U.S. Fixed-Rate Loans Jump to Five-Month High – Irvine Real Estate | Irvine Homes for Sale

by Robert Mack on December 10, 2010

in Buyers, Latest News, Sellers

U.S. mortgage rates surged to a five- month high, tracking a jump in bond yields after President Barack Obama agreed to extend tax cuts for two years.

The average rate for a 30-year fixed loan increased to 4.61 percent in the week ended today from 4.46 percent, the fourth week of gains, Freddie Mac said in a statement. The average 15- year rate climbed to 3.96 percent from 3.81 percent, according to the McLean, Virginia-based mortgage-finance company.

The agreement to extend tax cuts sent yields on mortgage- bond securities to six-month highs yesterday on speculation that the budget deficit may widen and inflation will accelerate. Rising borrowing costs from record-low levels may spur some prospective homebuyers to make purchases to lock in low rates, said Paul Dales, U.S. economist at Capital Economics Ltd.

“Once people see this might actually be the bottom, they go for it,” Dales said in a telephone interview from Toronto.

via bloomberg.com for the complete article

Interest rates continue to climb slowly…take advantage of these great rates in the 4’s while they still last! Once they move up, you’ll wish you did! Remember, prices are a short term investments and they are NOW…..Interest rates are long term…

Posted on Irvine Orange County Real Estate Market News

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