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04 Feb 11 Thirty Year Home Loan Rates Rise

For the most part interest rates were flat this week, but some of the popular mortgage rate terms did increase slightly. The average rate on the fixed 30-year mortgage inched up this week as bond yields increased. Freddie Mac said Thursday the average rate rose to 4.81%  this week from 4.80% the previous week.  Rates fell to a 40-year low at 4.17 % in November.  The average interest rate on the fixed 15-year mortgage dipped to 4.08% from 4.09%. It reached 3.57% in November, the lowest level on records starting in 1991.

Home loan rates have been little changed this year after spiking more than half a percentage point in the last two months of 2010. Investors sold off Treasury bonds during that time, driving yields lower. Mortgage rates tend to track the yield on the 10-year Treasury note.  High foreclosures, job worries and expectations that home prices will fall further have kept many potential homebuyers on the sidelines. Historically low mortgage rates haven’t been enough to jumpstart the housing market.

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