The Kestner Team

The Tennessee Association of Realtors report on Monday:

The 30-year fixed mortgage rate rose slightly to 4.23 percent this past week compared to 4.21 percent a week earlier, Freddie Mae reports. Interest on 15-year fixed loans also rose, moving to 3.66 percent from 3.64 percent, while the five-year adjustable-rate mortgage fell to 3.41 percent from 3.45 percent and the one-year ARM remained unchanged at 3.30 percent. Freddie Mac chief economist Frank Nothaft attributed the flat rates to mixed economic data released this past week.

Barring a major announcement from the Federal Reserve next month, the Mortgage Bankers Association expects rates on 30-year fixed mortgages to average 4.4 percent in this year's fourth quarter, rising to 4.7 percent in the first three months of 2011 and to 5.1 percent by the end of next year. MBA chief economist Jay Brinkmann expects a rebound in purchase originations next year, but the volume will still only roughly match last year's level. Refinance activity, however, is expected to decline in the new year as mortgage rates begin an upward climb from current record lows.

 4.23% TO 5.1% REPRESENTS A $108 PAYMENT INCREASE ON A $200,000 LOAN !!!!!