USA Today reported last week that Mortgage Rates continue to rise, increasing about a full percentage point since hitting record lows about a year ago.
Mortgage buyer Freddie Mac said Thursday the average rate for the 30-year loan ticked up to 4.41% from 4.40% last week. The average for the 15-year mortgage increased to 3.47% from 3.42%.
Read the USA Today article: Average 30-year mortgage rate rises to 4.41%.
The increase in mortgage rates over the year was driven by speculation that the Federal Reserve would reduce its $85 billion-a-month bond purchases, which have helped keep long-term interest rates low. Indeed, the Fed has announced three $10 billion declines in its monthly bond purchases since December. The latest plan is to cut its monthly long-term bond purchases to $55 billion because it thinks the economy is steadily healing.