Mortgage rates made the expected move up this week, following market speculation that the Federal Reserve will reduce its bond purchases after a strong jobs report for June.
Thirty-year, fixed-rate mortgages averaged 4.51 percent with an average 0.8 point this week, up from an average of 4.29 percent last week, mortgage giant Freddie Mac reported in its weekly survey.
A year ago, 30-year mortgages averaged 3.56 percent on the popular home financing option.
The average for 15-year, fixed-rate mortgages rose to 3.53 percent with an average 0.8 point, up from an average of 3.39 percent, Freddie Mac reported.
A year ago, 15-year, fixed-rate home loans averaged 2.86 percent.
Read my story from Tuesday about climbing mortgage rates.
“June’s strong employment led to more market speculation that the Federal Reserve will reduce further bond purchases causing bond yields to rise and mortgage rates followed,” Frank Nothaft, Freddie Mac’s chief economist, said.
The nation added 195,000 jobs in June, which exceeded forecasts, while revisions to the two previous months added 70,000 on top of that.
But minutes from the Fed’s monetary policy committee meeting in June, released Wednesday, “stated that many stated that many members indicated further improvement in the outlook for the labor market would be required before it would be required before it would be approprates to slow the pace of bond purchases,” Nothaft said.