My Real Estate Blog

30-year fixed-rate mortgage averaged 4.61% with an average 0.7 point for the week ending December 9, 2010, up from last week when it averaged 4.46%. Last year at this time, the 30-year FRM averaged 4.81%. 

5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.60% this week, with an average 0.6 point, up from last week when it averaged 3.49%. A year ago, the 5-year ARM averaged 4.26%.

After Europe made strides in its debt situation, investors left the security of U.S. Treasury debt causing bond yields to rise and mortgage rates along with them. Interest rates for 30-year fixed mortgages are now almost a half percentage point higher than the record low set in mid-November, which for a $200,000 conventional loan amounts to $50 more in monthly payments.

Housing demand appears to be picking up. Existing pending sales jumped 10.4% in October to the strongest pace since April, according to the National Association of Realtors. Mortgage applications for home purchases rose for the three consecutive weeks ending on December 3rd, representing a 17.7% increase and the strongest pace since the week of May 7th, based on figures released by the Mortgage Bankers Association .