Mortgage Rates On The Rise - As of 12/3/2010

Freddie Mac reported in their Weekly Mortgage Survey that rates have inched upwards for the third week in a row. They show 30 year fixed rate mortgages at an average rate of 4.46% with .8% in fees and points. This is up from 4.17% with .8% in fees and points, the lowest point in 2010, three weeks earlier.

Mortgage rates remain historically low, but according to the Mortgage Bankers Association the increase has resulted in a drop in new mortgage applications.

We saw a rise in mortgage rates for other programs as well, with 15 year fixed mortgages at an average of 3.81% with .7% in fees and points, and 5 year adjustable rate mortgages averaging 3.49% with .6% in fees and points.

There is a positive aspect to the rising mortgage rates - according to Frank Nothaft, vice president and chief economist with Freddie Mac, "Mortgage rates followed bond yields higher this week as recently released economic data suggest the economy may be stronger this quarter than the previous."