Mortgage Rates Highest Since August

Mortgage rates jump amid fears of inflation and massive bond sell-offMortgages jumped to their highest rate since early August on Thursday amid fears of inflation and a major bond sell-off. It marks the first rate increase in eight weeks.

Rates on 30-year fixed-rate mortgages averaged 4.39 percent, up dramatically from last week's 4.17 percent, according to Freddie Mac's primary mortgage market survey. The rate for 15-year fixed-rate mortgages ballooned to 3.76 percent, up from 3.57 percent last week.

Analysts are citing the announcement of the government's second quantitative easing (QE2) plan, a bid to purchase $600 billion in government bonds, as the principal reason for the jump. But despite the sudden uptick, mortgage rates remain highly competitive and should not dissuade prospective buyers from moving forward. Last year, 30-year fixed-rate mortgages averaged 4.83 percent.

For more insights on mortgages and refinancing see these AOL Real Estateguides:

More on AOL Real Estate:
Find out how to
calculate mortgage payments.
Find
homes for sale in your area.
Find
foreclosures in your area.
Get
property tax help from our experts.
Read Full Story

Can't get enough real estate news?

Sign up for Finance Report by AOL and get everything from celebrity homes to renovation tricks delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

Find a home

Buy
Rent
Value
Powered by Zillow