Home Loans: Rates for Home Loans Skyrocket to 10-Month High

By Mimi Li
Mimi Li
Mimi Li
February 9, 2011 Updated: October 1, 2015

SAN RAFAEL, CA - MAY 24: A 'sale pending' sign is displayed in front of a home for sale May 24, 2010 in San Rafael, California. (Justin Sullivan/Getty Images)
SAN RAFAEL, CA - MAY 24: A 'sale pending' sign is displayed in front of a home for sale May 24, 2010 in San Rafael, California. (Justin Sullivan/Getty Images)
Rates for home loans in the U.S. skyrocketed to 10-month highs, a national survey from Bankrate.com released on Wednesday has revealed.

The average mortgage rate for 30-year home loans hit its highest level since April 2010, jumping to 5.23 percent, according to the Bankrate survey. Last week, 30-year mortgages only averaged a 5.02 percent rate.

Shorter 15-year fixed home loans also leapt about two-tenths of a percentage point, from 4.29 percent last week to 4.48 percent.

The Bankrate.com mortgage rate survey differs from the Primary Mortgage Market Survey from government-backed mortgager Freddie Mac, which pegged rates for 30-year and 15-year home loans at a lower 4.81 percent and 4.08 percent on Feb. 3.

Bankrate.com’s survey only includes data from the top 10 banks and housing markets, which explains the disparity between the two reports, but does foreshadow sharply rising interest rates for home loans across the country amid improving economic conditions.

“Just when mortgage rates had lulled everyone to sleep, fluctuating less than one-tenth of a percentage point from mid-December through early February, they broke out—and in a big way,” Bankrate.com said in a press release.

“Mortgage rates jumped to the highest point since April 2010 as better economic news fueled both optimism and a move out of low-yielding assets.”

Mimi Li