Mortgage Rates up a Little Above 5%

Low mortgage rates maybe a thing of the past as the average rate on a 30 year-fixed-rate home loan rose above 5% last week. According to an L.A. Times Article: "The average rate on a 30-year fixed-rate loan, assuming a 20% down payment, increased to 5.02% from 4.89%."

The average 15-year rate rose as well from 4.32% to 4.44%. Applications for purchase loans slipped 5% last week from the previous week, the bankers group said. Applications for refinance loans, which have made up about two-thirds of the total recently, edged down 0.1%. The decline in overall applications was 1.8%.

It's a Home not an ATM

One thing that many people have learned from the downturn of the housing market is that homes are not personal ATM's and should not be used as an engine of personal wealth.

The Purchase of a home can not longer be looked at as an investment for the future and something that should be remembered is: a home purchase ought to be considered with the same warning issued to investors in securities: Past performance is not indicative of future results.

Many people went into home buys with the idea that they would come away making money, but in most cases following a trail of refinances people are underwater.