For the second week in a row, the average rate for a 30-year fixed mortgage was up. This week, the average is 4.2%, while last week it was around 4.14%. 15-years are up, too.
It was exciting when rates dropped for five weeks in a row starting in May 2014, but now it seems that rates are on there way back up, and perhaps for a while. In the second half of 2014, the Federal Reserve will continue scaling back bond purchases that have helped keep rates low. In fact, the policy makers at the reserve will be meeting this week to decide what happens next. It was kind of surprising that rates were lowering last month, no one expected it. But now, it seems like mortgage rates are “back to normal” and behaving more like we would expect them to in an improving economy.