Mortgage Rates on the Rise

The national average 30-year fixed mortgage rate has increased from 5.21 percent to 5.24 percent over the last week, according to Bankrate.com’s weekly survey. Regardless of this small gain, mortgage rates are still at all-time lows, having plunged from 6.77 percent last October.

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Analysts generally agree that mortgage rates will remain relatively low for the rest of 2009, thanks to investors’ concerns about the weak economy. Continued government purchases of government and mortgage-backed debt should also help to keep mortgage rates low for the rest of the year.

This makes now an ideal time for those who are currently paying off a mortgage to consider refinancing, as the plunging mortgage rates could end up saving families hundreds of dollars per month. For example, a homeowner who purchased the home a year ago could refinance now and benefit from a mortgage rate that has dropped a full percentage point.