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As economy improves, mortgage rates go up

After record lows, mortgage rates have continued to rise in the last few weeks. They are technically still considered “low,” in comparison to years past, but with each increase, a home is that much less affordable. As the interest rate rises, so do monthly payments.

As of mid-February, the average rate for a 30-year fixed rate mortgage was 5.05% in the week that ended today, according to Freddie Mac, up from 4.81% the week before.

In a separate report, the online lender LendingTree.com reported the average 30-year rate was even higher, rising to 5.31% in the last week.

Frank Nothaft, vice president and chief economist at Freddie Mac, explained that long-term bond yields jumped because of recent reports of positive economic data. Lower unemployment rates have also been good news, but tend to have an opposite effect, translating into higher borrowing costs.

If you need help finding a lender, Meservier & Associates of Keller Williams Realty Mid Maine maybe able to help. Send an email  at agent@meservier.com or call us at 207-784-2525.

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