After a series of declines, rates on 30-year mortgages have shown improvement for the second-straight week. According to the Federal Home Loan Mortgage Corp., or Freddie Mac, the average rate for 30-year fixed-rate loans climbed to 4.37% this week from the previous week’s 4.35%.

The development came after interest rates dipped to the lowest level in decades, prompting investors to move their money into safer Treasury bonds. Two weeks ago, the average rate for 30-year fixed rate loans dropped to 4.32%, which was the lowest since Freddie Mac began keeping records in 1971.

Market analysts and industry experts attributed the meager increase to improving economic conditions. Recent data showed that first-time claims for unemployment benefits have fallen for the past three weeks. Retail sales inched up in August, while factory output expanded for the 12^th time in 14 months. According to experts, the rosy economy outlook may have encouraged some investors to pull out their money from Treasury bonds and invest them in stocks, which may have prompted the increase in mortgage rates.

Despite the increase in rates on 30-year mortgages, however, the average rate on 15-year fixed loans fell from 3.83% last week to 3.82%. The figure was said to be the lowest since 1991. The average rate on five-year adjustable-rate mortgages, on the other hand, was 3.55%, down from last week’s 3.56%.

Do you think rates on 30-year mortgages will continue to increase in the coming weeks? Share to us your thoughts by joining our forums. Log in or type in your email address below to register.