Monday, March 26, 2012
30-Year Mortgage Rates Edge Above 4%
Mortgage rates moved up quite a bit this week, following higher bond yields and improving economic data, Freddie Mac reports in its weekly mortgage market survey.
"Mortgage rates are catching up with increases in U.S. Treasury bond yields, placing the average 30-year fixed mortgage rate above 4 percent for the first time since the end of October 2011,” says Frank Nothaft, Freddie Mac’s chief economist. “Bond yields rose over the past two weeks in part due to an improving assessment of the state of the economy by the Federal Reserve, better than expected results of commercial bank stress tests, and the likelihood of a second bailout for Greece.”
The 30-year mortgage rate, the most popular choice of home buyers, took a big leap upward, after hovering below 4 percent and sitting at all-time record lows for weeks. Here’s a closer look at rates for the week ending March 22: