Mortgage Rates rose over the past week but still remain just below 5.00% for thirty-year fixed. Returning confidence in the stock market and signs of an eventual economic turnaround put downward pressure on bond prices at the end of last week causing rates to rise. We have seen some rebound in the bond market this week but not enough to affect a significant change in mortgage rates.

We are entering the corporate earnings season which could be a major driver of the stock market, for better or worse, and depending on whether we see a continued rally or a return to a sell-off mentality could have a direct impact on bonds and rates. We’ll have to wait and see.

More good news on the housing front, the Mortgage Bankers of America released their weekly report on mortgage applications on Tuesday and said for the week ended April 3rd, applications rose by 4.7%. It was the fifth straight week mortgage applications have risen. This is yet another encouraging sign that the worst may be behind us and new life is being breathed into the housing market.