Freddie Mac announced on Thursday that the rate on the 30-year loan jumped to 4.08 percent, up from 3.92 percent the previous week. It was just a month ago that it touched 3.87 percent, the lowest since long-term mortgages began in the 1950s.
Mortgage rates are rising because they tend to track the yield on the 10-year Treasury note. The economic outlook has improved in recent weeks causing investors to shift money out of long-term U.S. Treasury bonds and into stocks. That has driven Treasury yields higher.
Higher mortgage rates could spur more sales, especially if home prices begin to rise. Potential buyers will likely move quickly to avoid paying higher rates down the line. Read more.
