Mortgage rates broke their downward trend to inch upward last Thursday for the first time in two weeks, replacing news that QE3 had driven levels for 15- and 30-year mortgages to new record lows. However, Thursday was still the third-best day in the history of mortgage rates, as best-execution levels for 30-year fixed rates lingered at 3.25 percent.
In addition, home prices in the nation’s largest cities rose 1.6 percent in July to the highest levels in nearly two years, according to the Standard & Poor’s/Case-Shiller index. Atlanta and Los Angeles housing prices rose the most in July, while Phoenix experienced the highest year over year improvement.
While the majority of the nation’s housing news is encouraging, prospective homebuyers in a handful of states received news that their mortgage payments could increase despite QE3, albeit a small amount for the majority.