Mortgage rates skyrocket

Mortgage rates jumped to their highest level in ten months after crossing the 5% barrier for the first time in half a year.

Housing Predictor reported that the rise was due in part to fewer applications for home mortgages being filed. The rate on a 30-year fixed-rate mortgage rose to 5.13%, a significant jump from 4.81% the previous week. The average rate on a 15-year fixed-rate mortgage also increased, hitting 4.29%.

The big rise suggests that banks and mortgage companies believe the economy is stronger than many analysts believe.