Mortgage rates rise for week of August 16, 2010

Mortgage rates moved up last week, with rates for a 30-year fixed-rate mortgage increasing from 4.79 percent to 4.80 percent. Falling prices for existing homes coupled with low mortgage rates offer strong incentive for buyers.

Calling all procrastinators! Now may be your best chance for combining the power of a low mortgage rates with low home prices for increasing your home buying power. MSNBC reports that existing home prices are at their lowest since 1995, and HSH Associates reports that mortgage rates have ticked upward slightly, but not enough to impact potential buying power. Average combined rates for a 30-year FRM moved up one basis point to 4.80 percent, while average combined mortgage rates for a 15-year FRM moved up by two basis points to 4.28 percent. The average combined rate for a 5/1 ARM remained steady at 3.77 percent. With rates like these, and plummeting home prices, this may be "the" time for buying a home.

Powering up your mortgage loan: Lower home prices promote affordability

Buying a home is a major financial investment requiring planning and confidence in your ability to make mortgage payments. News reports suggest that many potential buyers are sitting on the sidelines over concerns about jobs and ongoing economic challenges. Only you can know whether your finances, employment situation and risk tolerance allow you to buy a home now, but keep in mind that no one can predict what may happen over the years it takes to repay a mortgage loan. For those prepared to buy a home now, the combined influences of lower home prices, low mortgage rates, and fewer buyers can extend home affordability and allow you to qualify for a larger mortgage loan with lower payments.

Our live database of current mortgage rates can help you find the best mortgage rates in your area.