Mortgage rates are up as seen from the Primary Mortgage Market Survey or PMMS recently released by Freddie Mac. The survey shows an average 5.25% for the 30-year fixed rate mortgage with 0.8 point for the week of February 5 compared to the 5.10% average rate prior to that week. The survey also shows an increase in the 15-year fixed mortgage rate from 4.80% the previous week to 4.92% for the week ending February 5.

Freddie Mac vice president Frank Nothaft said the positive economic reports resulted to an increase in the fixed-rate mortgage interest rates. This can be good news or bad news depending on which side of the fence you are in. The present housing conditions is definitely more affordable (the most affordable in fact in 19 years) with low mortgage rates and low prices of real estate so buyers will definitely feel threatened by the interest rate hike.

The low mortgage rate is seen as the reason behind the 6.3% rise in the number of pending existing home sales. The home monthly affordability index also increased to an all time high in December last year according to the National Association of Realtors.