Thursday, October 13, 2011

30-Year Mortgage Rate Jumps to 4.12%

The average rate on the 30-year fixed-rate mortgage jumped to 4.12% in the week ending Oct. 13 after hitting a record low of 3.94% in the prior week, Freddie Mac reports.

"An employment report that was better than market expectations helped to lift long-term Treasury bond yields and mortgage rates as well," said Frank Nothaft, Freddie Mac's chief economist, in a statement. A year ago, the 30-year rate was at 4.19%.

At some point the rate hikes are not going to stop. When price inflation becomes more obvious, rates will soar. The opportunity to lock in current low rates is not going to last much longer.