Mortgage Rates Hit Recent High Close to 5 Percent

By Kyle Chezum Updated on 4/14/2011

Average rates on 30 year fixed rate mortgages have been increasing for four weeks straight, mirroring a sudden increase that occurred close to the beginning of the year.  That first raise reversed itself in the months that followed, but as the spring home buying season approaches, it's likely that higher interest rates will arrive and stick around for a while.

Mortgage rates have been tracked at an average height of about 4.91%, which is much higher than they were when at their lowest last fall.  These rates are still lower, though, than they were at this time last year.  The spring of 2010 began with rates close to 5.07%.  Spring of 2011, though starting on a much lower note, promises to be no easier on homebuyers.

Strict lender regulations have made it increasingly difficult for borrowers to take advantage of the low mortgage rates, and this factor, when coupled with home values that continue to decrease across the nation, has made refinancing a difficult proposition as well.  Time will tell whether home purchase numbers will pick up as they traditionally do this spring, or whether economic factors will keep purchase levels unseasonably low.