CLEVELAND, Ohio -- The average rate for a 30-year, fixed-rate loan reached a new high for the year following nervousness about future moves by the Federal Reserve Bank.
The average hit 4.58 percent, up from 4.4 percent last week, mortgage giant Freddie Mac said today. In Cleveland, atThird Federal Savings -- one of this region's biggest and traditionally lowest-cost lenders -- the rate today was 4.99 percent. KeyCorp is at 4.94 percent.
The rate hikes follow increases in bond yields, which moved because the Fed has been talking about the strength of the economy and that it is planning to slow down buying bonds through its repurchase program later this year.
A year ago, the 30-year rate was 3.66 percent.
Rates were at their lowest this year in early January, at 3.35 percent, after inching up from the record low of 3.31 percent in November. The big increase has come in the last three months, just in time for summer home-buying.
The 15-year rate today was 3.6 percent, up from 2.89 percent a year ago.
Freddie Mac economist Frank Nothaft noted that Fed officials in a recent meeting acknowledged that "rate increases might restrain housing market activity, but several members expressed confidence the housing recovery would be resilient in the face of higher rates."
He added that existing home sales increased in July to the strongest pace since November 2009, and home builder confidence increased in August to its highest level since November 2005. These moves came despite big hikes in mortgage rates compared with last spring.
The average hit 4.58 percent, up from 4.4 percent last week, mortgage giant Freddie Mac said today. In Cleveland, atThird Federal Savings -- one of this region's biggest and traditionally lowest-cost lenders -- the rate today was 4.99 percent. KeyCorp is at 4.94 percent.
The rate hikes follow increases in bond yields, which moved because the Fed has been talking about the strength of the economy and that it is planning to slow down buying bonds through its repurchase program later this year.
A year ago, the 30-year rate was 3.66 percent.
Rates were at their lowest this year in early January, at 3.35 percent, after inching up from the record low of 3.31 percent in November. The big increase has come in the last three months, just in time for summer home-buying.
The 15-year rate today was 3.6 percent, up from 2.89 percent a year ago.
Freddie Mac economist Frank Nothaft noted that Fed officials in a recent meeting acknowledged that "rate increases might restrain housing market activity, but several members expressed confidence the housing recovery would be resilient in the face of higher rates."
He added that existing home sales increased in July to the strongest pace since November 2009, and home builder confidence increased in August to its highest level since November 2005. These moves came despite big hikes in mortgage rates compared with last spring.
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