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Average rate on 30-year mortgage jumps

By Associated Press

LAST UPDATED: 04:56 a.m. HST, Aug 22, 2013

WASHINGTON » Average U.S. rates for fixed mortgages rose this week to their highest levels in two years, driven by heightened speculation that the Federal Reserve will slow its bond purchases later this year.

Mortgage buyer Freddie Mac says the average rate on the 30-year loan jumped to 4.58 percent, up from 4.40 percent last week. The average on the 15-year fixed loan rose to 3.60 percent from 3.44 percent. Both averages are the highest since July 2011.

Rates have risen more than a full percentage point since May. Last week's spike comes after more Fed members signaled they could be open to reducing the bond purchases as early as September. The purchases have helped keep long-term interest rates low, including mortgage rates.

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Grimbold wrote:
The interest rate is still way too low, namely barely at inflation level, because the FED is flooding the country with paper dollars like crazy.
on August 22,2013 | 05:28AM
mikethenovice wrote:
This is not the Wall Street Journal. Don't talk above our head.
on August 22,2013 | 07:01AM
HD36 wrote:
You been in a cave the last 10 years?
on August 22,2013 | 08:12AM
HD36 wrote:
Interest rates are still near historical lows. The Fed has to buy $45 billion of UST bonds a month and $40 billion of mortgage backed securities in an effort to keep them low. At some point they are going to taper, then stop buying, and ulimately try and sell all the toxic assets off their balance sheet. They're going to find it extremely hard to taper without crashing the economy because the US is the largest debtor nation in the history of the world we are addicted to cheap cheap money via low interest rates.
on August 22,2013 | 08:11AM
samidunn wrote:
Buy your MacDonald mansions while their hot.
on August 22,2013 | 11:33AM
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