Thursday, June 6, 2013

Mortgage Rates Surge as Fed Tapering Fears Mount

Worries the Federal Reserve may begin to slow its stimulus efforts sent mortgage rates last week to their highest level in a year, drying up demand for home refinancings, data from an industry group showed on Wednesday.


The Mortgage Bankers Association said interest rates on fixed 30-year mortgage rates surged 12 basis points to average 3.9 percent in the week ended May 24. It was the highest level since May 2012 and the biggest jump in 14 months.

The rise sent the seasonally adjusted index of mortgage application activity down 8.8 percent as refinancing applications tumbled 12.3 percent. It was the biggest drop in refinance applications this year as demand fell to the lowest level since December.

READ MORE:  http://www.cnbc.com/id/100772027

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