June 29th, 2013 4:42 PM by Lori Speight
The 30-year fixed-rate mortgage took a large jump this week, rising from 3.93 percent last week to 4.46 percent this week -- its largest weekly rise since 1987, Freddie Mac reports in its weekly mortgage market survey.
Fixed-rate mortgages soared with bond yields amid the Fed’s recent remarks on June 19 that it might soon reduce its bond purchase program, which has helped to keep mortgage rates at historical lows. The Fed plans to moderate its purchases of bonds later this year and end purchases altogether by the middle of 2014.
"Higher mortgage rates may dampen some housing market activity but the effect will be muted by the high level of buyer affordability, and home sales should remain strong,” says Frank Nothaft, Freddie Mac’s chief economist.
Freddie Mac reports the following national averages with mortgage rates for the week ending June 27:
Source: Freddie Mac