Rising interest rates have lifted fixed mortgage rates back to the levels of last spring, Freddie Mac said in its last weekly report for 2010.
The survey of lender offering rates, released Thursday morning by the big government-controlled loan buyer, showed 30-year fixed-rate mortgages averaged 4.86% with 0.8% of the loan amount paid upfront in lender fees. That compared with 4.81% last week and 5.14% at this time last year.
It's about what lenders were offering last May, Fannie Mae said, adding that rates are still "incredibly low" by historical standards. For the year, 30-year fixed mortgage rates for well-qualified borrowers averaged just below 4.7%, the lowest since 1955, when a typical home cost $22,000, Freddie Mac economist Frank Nothaft said.
Tracking a sharp decline in Treasury bond yields, the 30-year rate sank below 4.2% for a week in October and again in November, Freddie Mac reported. But the Treasury yields, which directly influence mortgage rates, have risen in recent weeks on signs that the economy is strengthening