According to the most recent weekly survey by Freddie Mac, the average interest rate on a 30-year fixed-rate mortgage rose from 4.35 to 4.37 percent - the second consecutive weekly increase. Over the course of a traditional loan, that increase equates to a jump of more than $1,000 in borrowing costs.
Despite the rise, interest rates remain well below levels from the same week a year ago, when they were 5.04 percent. Industry analysts said that the low interest rates have been unable to motivate a significant increase in homes sales as intended, because many home buyers are worried about further price drops and the state of the economy.
"It is difficult to commit to homeownership for the first time when you are apprehensive about your own job security given the high level of unemployment," David Adamo, CEO of Luxury Mortgage, told Reuters.
But even with interest rates still below normal levels, many Americans feel that they will have trouble getting a loan. According to a recent study by Fannie Mae, 54 percent of Americans consider it difficult to get a mortgage in the current economic climate.
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