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Budgets are being tightened across America as the government works to finalize the most recent proposals to reduce the national deficit. The number of Americans that recently filed for first time unemployment benefits moved higher after several weeks of trending downward. Finances are getting tighter for low and middle income Americans and the prospect of owning the American dream home just moved a little further out of reach for some. The long term mortgage interest rates for 30 and 15 year fixed rate mortgage options recently moved higher. This move will make it too expensive for some Americans to move forward with the home buying process. This is not a good sign for the housing sector which continues to struggle. The number of sales of existing and new homes has not posted favorable data recently and the higher rates are unlikely to help the situation. Specifically, Freddie Mac posted yesterday that the average interest rate on the 30 year fixed rate loan moved up to 4.97 percent from 4.87 percent. This data comes after the interest rate on the 30 Year FRM hit a 40 year low of 4.17 percent in November. The average rate on the 15 year fixed rate mortgage moved higher to 4.13 percent from 4.10 percent. The general rates remain relatively low, but current data points are tracking higher in this environment. Author: Stephen Johnson
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