30-Year Fixed Mortgage Rates Up 27 Basis Points To Four-Month High
Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.34 percent, up from 4.07 percent at this same time last week. This is the highest average rate reported on Zillow Mortgage Marketplace in 16 weeks.
The 30-year fixed mortgage rate steadily increased for the majority of the week, peaking at 4.35 percent on Monday before falling to the current rate.
“Not surprisingly, higher yields on 10-year treasury bonds – up more than 30 basis points in the past month – are creating ripples in the mortgage markets,” said Zillow Chief Economist Dr. Stan Humphries. “While the Federal Reserve expected a second round of quantitative easing to push yields down, or at least keep them low, the opposite appears to be happening. This trend has only been exacerbated in the past week when fears increased that the bond-buying program might be facing political challenges which ran counter to market expectations that the government would be in the marketplace.”