New York, March 23 (alphajetsusa.com) – Since late October, the average rate on a 30-year fixed mortgage has hiked 4% for the first time. However, the increase may not derail budding signs of strengthening in the US housing market.
According to mortgage giant, Freddie Mac, the average rate on 30-year loans hiked to 4.08% this week, up from 3.88% two weeks ago. Mortgage rates are rising with higher yields on 10-year Treasury notes and the improving economy, although they were at or near record lows for months. They may even go higher.
Sales of existing homes slipped in February from January, though were still 9% higher than a year ago. Also, last month, building permits for single-family homes reached their highest rate in 22 months. For the week ending Thursday, the average on 15-year fixed mortgages rose to 3.3% from 3.16% last week.