Last week the rates for 30-year fixed home mortgages moved up to 5.42 percent while staying above the lowest rate achieved this past spring which was 4.78 percent. The week before the rate for the same mortgage was at 5.38 percent.
As mixed news continued to filter in last week on the state of the economy; mortgage rates stayed relatively level.
Earlier this month the rates increased to a high of 5.6 percent which was caused by investors concerned with inflation from the growth of government debt.
With continued signs of the housing market stabilizing, the threat of increased mortgage rates could slow that progress down considering that the market is so delicate. Increased mortgage rates will limit how much borrowers will be able to receive from lenders and in turn, borrowers could decide not to buy in the immediate future putting added strain on the market.
People who are in a position to buy now are encouraged to do so before rates begin to climb even higher.