U.S. Mortgage Rates Jump to Highest Since December

June 4 (Bloomberg) -- Fixed U.S. mortgage rates jumped to the highest level this year, signaling the Federal Reserve’s plan to lower borrowing costs has stalled.

The average 30-year rate rose to 5.29 from 4.91 percent a week earlier, Freddie Mac, the McLean, Virginia-based mortgage buyer, said today in a statement. The last time the rate was higher was Dec. 11, when it was 5.47 percent. The average 15- year rate rose to 4.79 percent from 4.53 percent.

“That’s quite a jump,” said Donald Rissmiller, chief economist at New York-based Strategas Research Partners. “The more rates go up, the more we need home prices to go down to equalize consumers’ payments. It’s those payments that have brought about a level of stability in housing unit sales.”

Rising rates may deepen the U.S. housing slump and sideline consumers hoping to refinance or purchase their first house. The number of Americans signing contracts to buy previously owned homes climbed 6.7 percent in April, largely on cheaper financing costs, according to the National Association of Realtors.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aN.fG1W_qxVI

Way back in 1964 I thought we got a good deal at 6%!

5.29 > 5 :)

If inflation is 4% and you are paying a 6% rate like in 65 you are doing pretty good 2% over inflation. In a deflationary period 5% is still quite high.

:kick: