Mortgage interest rates went up again for the ninth consecutive week. The 30 year fixed interest rate is considered the industry benchmark and it rose five points to 6.42% last week according to a recent survey of national mortgage lenders. Last fall the 30 year fixed interest rate was 5.76%.
Fixed interest rate 15 year mortgage also rose five points to 5.96%. This is the highest mortgage interest rates have been since the fall of 2003 when the rate was 6.47%. This increase took place after the US Department of Labor released the employment report. The reaction to this news caused bond yields to increase resulting in the interest rate increase. Mortgage interest rates have been steadily increasing for some time now. People with adjustable rate mortgage loans (ARM) have seen their payments go up over the past few months as a result. Interest rates for home equity lines have also resulted in higher monthly payments for many homeowners. Many people are mow refinancing adjustable interest rate mortgages to fixed rate loans.
In many areas interest rates for adjustable rate mortgages are lower than fixed interest rate loans. Rising interest rates are causing adjustable rate loans to lose their attraction compared to fixed mortgages. Interest rates for home equity loans are tied to the prime interest rate; the prime rate goes up every time the Fed raises short term rates. Because of this interest rates on home equity lines are now 60 points higher than interest rates on fixed 30 year mortgages.