Although still at historically low levels, the mortgage rate rose to 4.33% last week. This is the percentage for the average rate on 30-year loans. From 3.33% to 3.35% is the increase for the average rate on 15-year loans.
Until now, the Federal Reserve was making $85 billion-a-month bond purchases, which kept the rates low. Due to the signs of improving economic conditions, the Fed is now reducing these purchases. This naturally affects the mortgage rates.
Even though the construction industry is a bit chilled after the cold months of December 2013 and January 2014, the prospects for home builders are still positive. Home sales are expected to keep increasing, even if not at the same rate as in 2013.