Mortgage Rates Top 4% For The First Time In Three Months

March 22, 2012

in News

Mortgage Rates Top 4% For The First Time In Three Months

The average U.S. rate on a 30-year fixed mortgage has popped above 4% for the first time in more than three months. The sharp increase suggests the window to buy or refinance a home at historically low rates may be closing. Mortgage buyer Freddie Mac said that the average rate on 30-year loans jumped to 4.08% this week, from 3.92% the previous week. A month ago, it touched 3.87%, lowest since long-term mortgages began in the 1950s. The average on 15-year fixed mortgages rose to 3.30%, from 3.16% last week and a record low 3.13% two weeks ago. Mortgage rates are rising because they tend to track the yield on 10-year Treasury notes. The improving economy has driven prices of those securities down and yields higher in recent weeks. The past two months were the best winter for sales of previously occupied homes in five years, since the housing crisis began. Builders have grown more optimistic the past six months after seeing more people express interest in buying a home. [Read this article]

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