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Long term interest rates continue to show a rising trend. Mortgage interest rates rose sharply again this past week and the benchmark 30-year fixed rate, along with the benchmark 15-year fixed rate mortgage, rose higher. This being said, one should keep in mind that current interest rates, although on the rise, are still at historically low levels. Freddie Mac has been collecting and analyzing rates for some forty odd years and the overall collected data reveals that rates at their current level are well below the average long term interest rate over time. Over the last four decades, the average interest rate has been approximately 9 percent according to the data collected by Freddie Mac. The average rate collected just weeks ago came in at just over 4 percent. One can see that a significant discrepancy still remains regarding current rates when compared to the average rate over recent time. Relatively speaking however in terms of the here and now, the rise in current interest rates spells bad news for borrowers that were on the fence about purchasing a home. If one did not lock into lower rates last week, borrowing money this week just got more expensive. According to the Bankrate survey of large national lenders, the average benchmark 30-year fixed rate mortgage rose 11 points this past week to 5 percent. The benchmark 15-year fixed rate mortgage rose 11 basis points to 4.37 percent according to Bankrate. These jumps in rates are the highest in the past several months. Interest rate trends have been moving higher and fence sitters are feeling the pressure. Author: Stephen Johnson
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