http://finance.yahoo.com/news/mortgage-rates-near-4-barrier-143200476.html
Mortgage rates moved to within a hair of the 4% barrier this week, according to mortgage giant Freddie Mac.
The average rate for 30-year, fixed rate loans rose 0.07% point to 3.98%, and is up 0.63% point since the week of May 2. Rates have not been this high since the week of April 12, 2012.
The recent improvement in the employment picture should result in more home buying, which would pressure rates even higher. Rates have also been going up because the Federal Reserve has signaled that it might cut back on buying mortgage-backed securities.
The increase will boost monthly mortgage payments for homebuyers by about $33 for every $100,000 borrowed.
But the soaring rates create a double whammy for would-be home buyers, with home prices also on a rapid rise — up more than 10% in the 12 months ended March 31, according to the S&P/Case-Shiller national home price index.
If both trends continue, it could put a damper on a housing market still in a struggle to put the bust behind it.
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