Mortgage Rates Up, Refinancing Down

The 30-year mortgage rate is on the rise after three months of record lows.
Freddie Mac said Thursday that the average rate for a 30-year fixed-rate mortgage increased to 4.37 percent this week, up from 4.35 percent last week and 4.32 percent the previous week, the lowest level since the mortgage buyer began tracking it in 1971.
The 30-year mortgage, the most widely used loan, posted an average of 5.04 percent at this time last year.
The average rate on 15-year fixed loans did hit a new low, however, dropping from 3.83 to 3.82 percent this week; the lowest on record since 1991.
The average rate on a 15-year mortgage at this time last year was 4.47 percent.
Also falling:
*5-year adjustable-rate mortgages fell to an average of 3.55 percent, down from 3.56 percent last week.
*1-year adjustable-rate mortgages fell to an average of 3.4 percent, down from 3.46 percent.
Despite continually low mortgage rates, the Mortgage Bankers Association (MBA) on Wednesday said that applications for home loan refinancing fell 10.8 percent.
That’s the lowest level in over a month and a decrease for a second straight week after mortgage refinancing activity more than doubled since April.
MBA also reported that applications for new home loans dropped 8.9 percent from the previous week.
There’s certainly no shortage of housing inventory. RealtyTrac Inc. said Thursday that the U.S. foreclosure rate increased 3 percent in August from the month before and 25 percent from August 2009.
The online marketplace for foreclosed properties said there were more foreclosures in August than any month since the U.S. mortgage crisis began.
In August:

*One in every 381 U.S. houses received a foreclosure filing.
*Illinois ranked ninth in the country with one out of every 314 homes facing foreclosure.
*In Cook County, one in every 239 homes received a foreclosure filing.
For Chicago homeowners who are having difficulty paying their mortgages, the City of Chicago is hosting a Borrower Outreach Day this Saturday. Check it out, and put an end to rising foreclosure rates.