Despite several drops in interest rates by the Fed, mortgage rates moved up during the week ending December 20, 2007. Freddie Mac released the results of the Primary Mortgage Market Survey, which measures average rates on a 30-year fixed-rate mortgage across the country.
The average interest rate for this type of mortgage was 6.14 percent nationwide, up from 6.11 percent last week. The yearly change was slightly less, with the average interest rate for 30-year mortgages at 6.13 percent during the same week last year.
Rates were highest in the north central area of the country, where the average 30-year fixed rate mortgage stood at 6.22 percent last week.
The news of higher rates couldn’t come at a worse time, as foreclosures are up around the country and government officials and industry experts look for a way to spur demand across the country.
Foreclosures are up more than 100 percent than last year, and are at an all-time high nationwide.
The market for Chicago Homes got a bit more expensive on the news of higher rates, as interest accounts for a higher portion of a monthly payment. The effect of higher interest rates in the Chicago region remains to be seen.
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