Decline in Mortgage Rate Levels Off: Three-Month Decline in Rates For Area Mortgages Levels Off
The three-month slide in home mortgage interest rates has ended at a little less than 12 percent and now some rates are bouncing back up a bit, the latest reports on what it costs to borrow money for a house revealed yesterday.</br></br>The end of the steady decline showed up clearly in the weekly mortgage auction of the Federal Home Loan Mortgage Corp. where the average rate increased a fraction for the second week in a row. From 11.59 percent on June 25, the Mortgage CorporationÛªs average price climbed to 11.67 percent last week and went up again to 11.89 percent yesterday.</br></br>ÛÏIf someoneÛªs thinking of buying a house, itÛªs hardly worth waiting for' rates to go lower,Û said Philip Brinker-hoff, president of FHLMC, which provides mortgage money to lenders.</br></br>The effect of the turn-around is expected to be reflected in surveys of the mortgage costs in the Washington area that will be out this weekend.</br></br>ÛÏI have the feeling that maybe we have bottomed out,Û Robert Smith, president of Maryland Federal Savings and Loan commented yesterday. ÛÏWeÛªre at the point where consumers can expect the rate of interest to be about 12 percent for the next couple of months.Û