Mortgage rates rose for the second straight week, and could continue to climb higher, according to HousingPredictor.com.
The average rate on a 30-year fixed-rate mortgage rose to 4.8%, six basis points higher than the previous week. The rate on a 15-year fixed-rate loan also rose, climbing from 4.05% to 4.09%. The rise may have been fueled by fears that the rates for many borrowers are about to go even higher.
A new mortgage rating system used by Fannie Mae and Freddie Mac will likely result in higher rates for some borrowers. The new risk-based model most likely will affect borrowers who have bad credit history and a credit score under 620.