Average 30-year mortgage rate up to 4.33%

Photo credit: JefferyTurner / Foter / CC BY


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.


Read the source article at USA TODAY

Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.

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