The time refinancers feared may have arrived. Mortgage rates skyrocketed in the past few days, and it looks like they will keep going up.
"Mortgage rates have jumped more in the past week than they have in years," says Bob Walters, chief economist for Quicken Loans.
Why did rates rise so quickly? The Mortgage Bankers Association says, "Rates rose in response to stronger economic data and an increasing chance that the (Federal Reserve) may soon begin to taper their asset purchases."
The 30-year-fixed mortgage has stayed below 4 percent since May 2012, mostly because the Fed has helped keep rates low with its bond-purchasing program. But speculation that the Fed may taper the program soon has put upward pressure on rates.
The yields on Freddie Mac mortgage bonds had jumped to 3.54 percent today, compared to 3.19 last Wednesday. The yields on the 10-year Treasury note jumped from 2.02 percent to 2.15 percent. Rates tend to follow the same direction as these yields.
It is possible they will jump above 4 percent pretty soon.
Stay tuned. We'll keep you posted.