Mortgage rates rise to the highest level in nearly 2 years

The 30-year mortgage rate rose to its highest level in nearly two years this week, according to mortgage financing company Freddie Mac.

After a slight pause, Freddie Mac said rates climbed 0.22 percentage point to 4.51% for a 30-year, fixed-rate loan. The rate is the highest it has been since the week of July 28, 2011.

The rate for a 15-year mortgage hit 3.53%, up 0.14 percentage point.

Analysts blamed a 0.53 percentage point spike two weeks ago on the actions of the Federal Reserve. 

Rates began to run up following hints by chairman Ben Bernanke that the Fed would soon start tapering off on its purchases of up to $85 billion a month in bonds and mortgage-backed securities, a program designed to keep borrowing costs low.  (more)

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