The avg. cost of a 30-year, fixed-rate home loans rose to 4.36% on June 21, from a record low 3.36% in December.
Yields on Fannie Mae and Freddie Mac mortgage bonds guiding U.S. home-loan rates extended increases sparked by a potential slowing of the Federal Reserve’s debt purchases.
The yields have risen from a record-low of 1.68 percent reached Sept. 26, after the Fed announced it would start buying $40 billion of government-backed housing debt a month, embarking on its 3rd of so-called “quantitative easing” to spur growth.
Bonds are tumbling worldwide as the central bank moves closer to scaling back its $85 billion in monthly debt buying, which includes $45 billion of Treasuries.
Chairman Ben S. Bernanke said June 19 at a news conference following a statement by the Federal Open Market Committee the central bank may “moderate” the pace later this year and end the purchases around the middle of 2014 if the economy continues to improve as it forecasts.