Average mortgage rate rises to 4.37%

Though rates ticked up, they are still at HISTORICAL lows.  Now is the time to build your dream home!  At these rates, clients would have the same payment but be able to finance 20% more than another mortgage at 6% (which is still a relatively low rate).  In other words, a $300,000 mortgage at 6% and a $360,000 mortgage at 4.37% would have the same payment of about $1795 — you’re getting $60,000 more at the lower rate.  Dreambuilder can connect you with those that can help you finance your dream.  You can learn more about the affordability of going custom here.

WASHINGTON – Rates on 30-year mortgages climbed for the second straight week, but remain near the lowest level in decades.

Mortgage buyer Freddie Mac says the average rate for 30-year fixed loans this week was 4.37 percent. That’s up from 4.35 percent a week earlier and 4.32 percent the previous week, which was the lowest level on records dating back to 1971.

The average rate on 15-year fixed loans dropped to 3.82 percent. That was the lowest on records dating back to 1991 and was down from 3.83 percent last week.

Rates have been at or near the lowest level in decades since spring as investors sought the safety of Treasury bonds, lowering their yield. Mortgage rates tend to track those yield.

By ALAN ZIBEL

Source: Associated Press/AP Online
Publication date: September 16, 2010

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