Mortgage rates climb to two-year high
| Washington
The average U.S.聽rate聽on the 30-year fixed聽mortgage聽rose this week to 4.51 percent, a two-year high.聽Rates聽have been rising on expectations that the Federal Reserve will slow its bond purchases this year.
惭辞谤迟驳补驳别听产耻测别谤 Freddie Mac said Thursday that the average on the 30-year loan jumped from 4.29 percent the previous week. Just two months ago, it was 3.35 percent 鈥� barely above the record low of 3.31 percent.
The average on the 15-year fixed聽mortgage聽rose to 3.53 percent from 3.39 percent last week. That's the highest since August 2011.
Chairman Ben Bernanke has said the Fed could slow its bond purchases this year if the economy strengthens. The purchases have keptrates聽low. The yield on the 10-year Treasury, which聽mortgage聽rates聽typically track, has been rising.
Even with the gains,聽mortgage聽rates聽remain low by historical standards. Low聽rates聽have helped fuel a housing recovery that is helping to drive economic growth this year.
The annual sales pace of previously occupied homes topped 5 million in May for the first time in 3 陆 years. And sales of new homes rose at the fastest pace in five years.
Greater demand, along with a tight supply of homes for sale, has pushed up home prices. It also has led to more home construction, which has created more jobs.
To calculate average聽mortgage聽rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest聽rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year聽mortgage聽was 0.8 point this week, up from 0.7 point last week. The fee for a 15-year loan also rose to 0.8 point from 0.7 point.
The average聽rate聽on a one-year adjustable-rate聽mortgage聽was unchanged at 2.66 percent. The fee rose to 0.5 point from 0.4.
The average聽rate聽on a five-year adjustable聽mortgage聽rose to 3.26 percent from 3.10 percent. The fee was unchanged at 0.7 point.
