I'm Greg McBride with Bankrate.com, and here is your weekly look at mortgage rates.
Mortgage rates jumped to a two-year high this week. The benchmark 30-year fixed-rate mortgage is now 4.74 percent, the highest since July 2011. The average 15-year fixed-rate mortgage bounded higher to 3.75 percent, while the larger jumbo 30-year fixed rate climbed to 4.88 percent.
Adjustable-rate mortgages were mostly higher, reaching levels not seen since April 2011. The popular five-year adjustable rate is now 3.69 percent, and the seven-year ARM is at 4.04 percent.
Mortgage rates moved higher as investors took a glass-half-full outlook on economic data, particularly weekly unemployment claims filings. As a result, bond yields, to which mortgage rates are closely related, increased to two-year highs on speculation of a September start to tapering of the Federal Reserve's bond purchases. While nothing is official yet, and likely won't be at least until we get to the other side of the jobs report in early September, the markets have clearly priced in the expectation of Fed tapering at that point.
No matter which way mortgage rates are moving, shopping around for the best mortgage terms will save you money. To find the lowest mortgage rates in your area, use the free search engine at Bankrate.com.
I'm Greg McBride.