Rates Continue to Climb

For the second week, Freddie Mac puts the average 30-year fixed rate at 6.13 percent, up a from 6.12 percent last week. The 15-year fixed rate, popular among refinancing borrowers, also rose to 5.89 percent from 5.86 percent. All of this follows a month long downward trend. Initial interest on five-year adjustable-rate loans increased as well, rising to 5.96 percent from 5.92 percent. One-year ARMs, however, fell from 5.45 percent to 5.44 percent.

But overall we see that interest rates remain low. Frank Nothaft, Freddie Mac chief economist says, "This could bode well for housing in the new year," He goes onto say, "Indeed we have seen a spike in refinancing activity over the past few weeks as rates have come down. Borrowers who have adjustable-rate mortgages that are scheduled for a rate adjustment in 2007 may want to consider refinancing those loans now."

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