Posted: Feb 10, 2011 9:12 AM by Nichole Larkey & AP
NEW YORK (AP) - The average rate on the 30-year mortgage topped 5 percent this week for the first time since April. Higher rates could further hamper the struggling housing market ahead of the spring's prime home-buying season.
Freddie Mac says the average rate rose to 5.05 percent from 4.81 percent last week. It hit a 40-year low of 4.17 percent in November. The average rate on the 15-year home loan increased to
4.29 percent from 4.08 percent. It reached 3.57 percent in
November, the lowest level on records starting in 1991.
Rates are following the yields on the 10-year Treasury note,
which are spiking on fears of higher inflation. Investors have been
demanding higher Treasury yields since the Federal Reserve began
its $600 billion bond-buying program to boost the economy.