Mortgage Rates Are Heading Higher As Fed Plans Bond Taper

Mortgage rates rose to a three-month high last week as the bond markets reacted to the Federal Reserve’s announcement it would “soon” begin tapering its fixed-asset purchases.

The average U.S. rate for a 30-year fixed home loan jumped to 3.01%, the highest since June 24, from 2.88% in the prior week, Freddie Mac said in a report on Thursday.