I'm Greg McBride with Bankrate.com, and here is your weekly look at mortgage rates.
Mortgage rates soared, posting the biggest one-week increase since the 2008 failure of Lehman Brothers that pushed the global financial system to the brink. This week, the catalyst was something far more benign. Federal Reserve Chairman Ben Bernanke indicated that continued improvement in the economy could prompt the Fed to begin dialing back their bond-buying stimulus later this year.
And there you have it. The resulting carnage in the bond market propelled mortgage rates to the highest level in nearly two years. The average rate on the benchmark 30-year fixed-rate mortgage is now 4.61 percent, the highest since July 2011, and up more than 1 full percentage point since early May.
The 15-year fixed mortgage rate is now 3.73 percent, while the jumbo 30-year fixed mortgage rate jumped to 4.75 percent.
The initial rates offered on adjustable-rate mortgages were not immune either. The five-year adjustable climbed to 3.45 percent -- the highest in more than two years -- while the 10-year adjustable hit 4 percent for the first time since August 2011.
Despite this week's huge increase in mortgage rates, it's still important to shop around for the best mortgage terms. To find the lowest mortgage rates in your area, use the free search engine at Bankrate.com.
I'm Greg McBride.