Mortgage rates jump; 30-year up from 3.42% to 3.53

Mortgage rates jump; 30-year up from 3.42% to 3.53

The typical interest rate for a 30-year fixed-rate mortgage shot above 3.5% early this week for the first time in more than four months, according to the widely watched Freddie Mac survey.

Higher rates are to be expected as the economy gradually strengthens, helped by the improving housing market, Freddie Mac said.Data cited by Freddie Mac’s chief economist, Frank Nothaft, included:
 -- New home sales of 367,000 in 2012, the most in three years and the first annual increase in seven years.
-- A trade industry gauge of pending home sales in 2012 that averaged its highest reading since 2006.
-- A 5.5% increase in the Case-Shiller composite index of home prices in 20 cities for the 12 months ending in November, the largest annual growth since August 2006. Read more...