Mortgage Rates Surge, Hurting Homebuyers

CNBC reports that a jump in U.S. bond yields is expected to drive mortgage rates as high as 4.5 percent, the highest rate since 2014.

The rising rates would be added to an increasingly expensive housing market, making it even harder for families to afford homes. Current home buyers are saving less due to high rent and student loan debt, meaning even small increases in mortgage payments could be prohibitive.

The average rate on the popular 30-year fixed started the year right around 4 percent but then began to climb on positive news in the U.S. economy, solid company earnings reports and a shift in foreign central bank policies which appear to now be following the Federal Reserve's tightening of monetary policy. The rate was at 4.28 percent by the end of last week.

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