Mortgage Rates Rise for Week of December 7

After hitting record lows last week, mortgage rates move up this week. Analysts expect rates to continue moving up and down, but say rates should stay near the 5% benchmark.

Record low mortgage rates may have been too good to last, as rates moved up across the board for the period ending December 11. Rates for a 30-year fixed-rate mortgage (FRM) moved from last week's low of 4.71% to 4.81%, while rates for a 15-year FRM moved up 5 basis points (0.05%) from 4.27% to 4.32%. Rates for a 5/1 adjustable-rate mortgage (ARM) increased from 4.19% to 4.26%.

Analysts suggest that, while rates are subject to moving up and down, mortgage rates near 5% are expected to continue. The 5% benchmark is important to today's potential borrowers, who tend to shy away from buying homes and refinancing mortgage loans when rates rise significantly above 5%.

To put current mortgage loan rates in perspective, rates for a 30-year FRM were 5.47% one year ago.

Don't Lose a Good Mortgage Loan Deal

Although getting the lowest rate possible can help you save over the term of your mortgage, you don't want to lose the home you want or put off important home improvements by waiting until rates go lower by a few basis points. A basis point is equal to 1/100 of 1 percent, so passing up 5.02% to see if rates decrease to 4.99% may not be your best option if you've already found the home you want to buy.

If you're financially prepared and otherwise ready to buy a home, it's important to balance your needs and goals with getting the best available rates. On the other hand, don't get talked into buying a home before you're ready--a mortgage loan is a long-term obligation that lasts several years on average before a home is sold or a mortgage refinance occurs.

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