In the last week, U.S. mortgage rates hit their highest levels in seven months. The rates have grown for five straight weeks alongside 10-year Treasury note yields, which have been pushed up by inflation concerns.

For the week ended Thursday, the average rate on a 30-year mortgage rose almost a quarter of a percentage point to 4.83%, the highest level since reaching 4.84% in the week that ended May 20, according to Freddie Mac. Rates bottomed out last month, during the week that ended Nov. 11, at 4.17%. Meanwhile, the 10-year bond yield rate closed at 3.48% Thursday, up from 3.22% a week ago.

The higher mortgage rates may slow the housing recovery. Pending home sales in the U.S. jumped 10% in October from September, but remained 20% less than sales during the year-ago period, the National Association of Realtors said earlier this month.

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Rates have definitely helped keep real estate afloat. However, the real problems are unemployment, uncertainty, confidence in the economy, and tight mortgage lending standards.

July 18 2013 at 2:28 PM Report abuse rate up rate down Reply

Just a bit of FYI to potential home buyers. Hey, no one else better then YOU what your comfortable paying every month for your mortgage payment. So, when it comes to that little finance clause in your contract for your dream home purchase, Ya know the clause that states what your willing to pay in interest should your mortgage be approved? Don't let the Realtor, or any one else talk you in to a 5.5% or 6.5% max on that little line. You figure out what your willing to pay, and what your comfortable with in so far as the percentage of interest you'll be paying over the life of the loan. And that's the percentage rate number YOU yourself write in on that little line. Remember, your the one who'll be making those mortgage payments every month, and paying all that interest. Not your Realtor, or anyone else. And remember, YOUR entire contract for purchase is contingent on YOU getting YOUR mortgage approved on YOUR terms and conditions. Not someone else's. And above all as a buyer. Don't let your emotions over some "ITS MY DREAM HOME" "I CAN'T LIVE WITH OUT IT" house attitude, get in the better of you. Keep and treat that new dream house a complete business transaction, until the deal works out financially for YOU. And if for some reason it doesn't work out the way YOU want it to. Then you've got to be fully prepared to walk away

December 16 2010 at 8:06 PM Report abuse +2 rate up rate down Reply