Mortgage Rates Rise To Five Percent Level Again

After falling below the 5% level, mortgage rates rose again above 5%, according to Freddie Mac’s weekly survey. The average rate for 30-year fixed mortgages was 5.05% for the week ended February 25, an increase from 4.93% last week, but a decline from 5.07% the previous year. The rates on 15-year fixed-rate mortgages increased to 4.33% last week from 4.4% the previous week but declined from 4.68% the previous year.

Among other news, The National Association of Realtors’ reported today that existing home sales for January fell by 7.2% to a seasonally adjusted annual rate of 5.05 million from a downwardly revised rate of 5.44 million in December. This follows another recent report of new home sales that declined by nearly 11 percent.

The New York Times also reported yesterday that the Obama administration is considering a ban on foreclosures unless they have first been examined for potential loan modification. The current rules recommend but do not require lenders to evaluate defaulters for a modification.