The Real Deal New York

Mortgage rates on the rise as job market improves

30-year fixed now up to 4.15 percent as unemployment tumbles to six-year low
July 10, 2014 06:10PM

Rates on 30-year mortgage loans are on the rise this week, following a better-than-expected jobs report last week.

For a 30-year fixed-rate mortgage, the average rate was up to 4.15 percent this week from 4.12 percent, according to a statement from Freddie Mac cited by Bloomberg News. And the average 15-year rate likewise ticked up, hitting 3.24 percent compared to 3.22 percent last week.

The numbers were bolstered by the addition of 288,000 workers in June and a tumbling unemployment rate to 6.1 percent — a six-year low, according to Labor Department figures. Yields for the government bonds that guide mortgage rates nudged upwards in response.

Housing demand is also on the rise, though 2014 got off to a slow start, according to Bloomberg. Purchases of previously-owned U.S. houses ticked up 6.1 percent in May, marking the biggest monthly gain since April 2010, according to National Association of Realtors data cited by the news site. [Bloomberg News]Julie Strickland