According to a survey released this week by Freddie Mac, mortgage rates are up to a dramatic 4.46 percent this week[1]. While rates have been steadily climbing for three weeks now and this 4.46 is a four-month high, it is still a full quarter of a point lower than rates this time last year and actually indicates a positive trend indicating that contrary to the nasty jobs numbers for this week, the economy “may be stronger this quarter than the previous [one],” explained Freddie Mac’s chief economist and vice president, Frank Nothaft[2]. The Federal Reserve has noted that 10 of its 12 regions “saw improvement” in the past month as well.

15-year mortgage rates are up 0.04 points to 3.81 percent, while adjustable rate mortgages are also climbing with rates averaging 3.49 percent. Housing prices, however, are not following the same slow, steady climb. In fact, housing prices have “trended downward” according to Nothaft. In August there were 9 cities on the Federal Reserve’s economic survey that reported positive annual growth in housing. Now, there are only six. However, despite falling home prices and a questionable job market, most mortgage experts expect mortgage rates to rise again over the next week.

Do you think that the fed should respond to the negative employment numbers released today by adjusting interest rates down again, or just stay out of the situation? Is it time for rates to rise?

Thank you for reading! Your comments and questions are welcomed below.

[1] http://www.dsnews.com/articles/mortgage-interest-rates-on-move-againupward-2010-12-02
[2] http://thehill.com/blogs/on-the-money/801-economy/131701-mortgage-rates-up-for-third-straight-week