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Are Mortgage Rates on Their Way Back to Normalcy?

Could mortgage rates be on their way back? That's what today's mortgage rates just may suggest.

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""Freddie Mac"":http://www.freddiemac.com/ reported that the 30-year fixed-rate mortgage ticked up by a few basis points to arrive at 3.62 percent, up from 3.59 percent last week.

The GSE also found interest rates for the 15-year home loan averaging 2.88 percent, with 5-year and 1-year adjustable-rate mortgages crawling to 2.76 percent and 2.69 percent, respectively.

""Frank Nothaft"":http://www.freddiemac.com/bios/exec/nothaft.html, VP and chief economist with Freddie Mac, said in a statement that ""[t]he latest economic indicators point toward low inflation but gradually stronger economic activity which placed further upward pressure on long-term Treasury yields and, in turn, fixed mortgage rates.""

He noted that inflation ""remains in check"" as important economic signals, like industrial production rates and retail sales, hover at reasonable rates.

""Bankrate.com"":http://www.bankrate.com/ likewise saw upward-bound changes in mortgage rates this week. The finance website saw interest rates for the 30-year home loan rising from 3.81 percent last week to 3.86 percent.

According to the report it releases weekly, the 15-year fixed-rate mortgage climbed from 3 percent last week to 3.05 percent.

In a separate statement, Bankrate.com attributed the increases to a quieter ""European front,"" as member states there continue to funnel funds into debt-straddled countries.

""Nervous investors have unwound some of the safe-haven trades that helped bring bond yields and mortgage rates lower,"" the finance website said. ""Whether the upward trend can be sustained depends on what happens on both sides of the Atlantic, with the European debt crisis and the path of the U.S. economy.""

What do you think about today's mortgage rates? Will they continue their upward bent, allowing all-time home affordability to recede? It may well be a good thing, as the ""National Association of Home Builders"":http://www.nahb.org/ pointed out Wednesday by saying that ""declining affordability could mean that the housing market finally bottomed out"":https://themreport.com/articles/declining-affordability-is-good-for-market-nahb-2012-08-15.

Drop us a line at [email protected] with your responses for a chance for your comment to appear in our monthly magazine.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
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