Mortgage Interest Rates ‘Surge to 2-Year High’

Average fixed-rate mortgages edged higher this week to the highest average in two years as speculation mounts that the Fed will soon taper its bond purchase program.

The Fed’s bond-buying program had been keeping mortgage rates at or near all-time lows in recent months. But as the economy improves, the Fed has indicated that it will soon taper its program, which will likely send rates higher.

Freddie Mac reports the following national average rates for the week ending Aug. 22:

  • 30-year fixed-rate mortgages: averaged 4.58 percent, with an average 0.8 point, rising from last week’s 4.40 percent average. A year ago at this time, 30-year rates averaged 3.66 percent.
  • 15-year fixed-rate mortgages: averaged 3.60 percent, with an average 0.7 point, rising from last week’s 3.44 percent. Last year at this time, 15-year rates averaged 2.89 percent.
  • 5-year adjustable-rate mortgages: averaged 3.21 percent, with an average 0.5 point, dropping from last week’s 3.23 percent average. Last year at this time, 5-year ARMs averaged 2.80 percent.

Source: Freddie Mac