Mortgage rates increase, buyers urged to start their home search
Jun 14 2012 4:15PM
After six consecutive weeks of new record-low mortgage rates, a survey reveals rates have increased but still remain low, providing potential buyers high affordability when paired with low home prices.
Freddie Mac's Primary Mortgage Market Survey shows the 30-year fixed mortgage rate averaged 3.71 percent for the week ending June 14, up from the previous week when it was 3.67 percent. While the increase may have some potential buyers wary of purchasing a home, rates are still much lower than this time last year when the average was 4.5 percent.
Additionally, the 15-year FRM averaged 2.98 percent, a slight increase from the week before's 2.94 percent but still considerably lower than a year ago when it averaged 3.67 percent.
The increased rate indicates that the housing market is stabilizing, as other economic factors are also improving. While this may not seem ideal for buyers, increased home prices are beneficial when selling properties.
"Fixed mortgage rates edged up slightly from record lows during a mild week of economic data releases," said Frank Nothaft, vice president and chief economist of Freddie Mac. "The Federal Reserve Board reported that household net worth rose by $2 trillion to $62.9 trillion over the first three months of 2012 primarily due to increases in stock markets."