The Real Deal New York

US mortgage rates hit 2015 highs on bullish housing data

Home loan costs jump as investors speculate on positive data

May 29, 2015 04:50PM


U.S. mortgage rates rose to 2015 highs this week, with bond investors reacting to positive reports from the housing market.

The average rate for a 30-year fixed mortgage climbed to 3.87 percent from 3.84 percent last week, matching levels seen at the end of 2014, according to Freddie Mac. The average 15-year rate rose to 3.11 percent from 3.05 percent last week.

Mortgage costs jumped as investors speculated that positive economic data would prompt the Federal Reserve to increase the amount it charges banks to borrow funds, according to Bloomberg.

Signed contracts to purchase previously owned homes rose to a nine-year high in April, according to National Association of Realtors. The average rate for 30-year fixed mortgages will likely hit 4.4 percent by the fourth quarter, according to the Mortgage Bankers Association. [Bloomberg]Rey Mashayekhi