News Summary: US rate on 30-year loan at 4.58 pct.

AP News
|
Posted: Aug 22, 2013 2:06 PM

RATES CLIMB: Average rates on U.S. fixed mortgages rose this week to their highest levels in two years, driven by heightened speculation that the Federal Reserve will slow its bond purchases later this year.

THE NUMBERS: Mortgage buyer Freddie Mac says the average rate on the 30-year loan jumped to 4.58 percent, up from 4.40 percent last week. The average on the 15-year fixed loan rose to 3.60 percent from 3.44 percent. Both averages are the highest since July 2011.

FED BOND BUYING: Last week's spike in rates came after more Fed members signaled they could be open to reducing the bond purchases as early as September. The purchases have helped keep long-term interest rates low, including mortgage rates.