US mortgage rates have risen from near-record lows of 3.98 percent to 4.46 percent, following the Federal Reserve's announcement last week that it would start lowering its purchases in the bond market.
The increase is the highest average in two years and a full point more than a month ago, according to a report Thursday from mortgage buyer Freddie Mac.
The rates on 15-year mortgages rose from 3.04 percent last week to 3.5 percent -- the highest rates since August 2011.
The report noted that the increase may lead more people to consider buying a home soon. Rates are still low by historical standards, and would-be buyers would want to lock them in before they rise further. However, more expensive home loans could price some people out and slow the housing market's momentum.
''People are getting off the fence a little bit more or choosing to buy now instead of choosing to buy three months from now,'' said Anthony Geraci, a Cleveland real estate broker-owner, the Associated Press notes.
Lower rates have also inspired a refinancing boom over the past two years. Many homeowners have locked in rates below 4 percent. That has lowered their monthly payments, leaving them with more cash to spend elsewhere and fuel more economic growth.
Meanwhile, a five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.08 percent this week, with an average 0.7 point, up from last week when it averaged 2.79 percent. A year ago, the 5-year ARM averaged 2.79 percent.
A one-year Treasury-indexed ARM averaged 2.66 percent this week, with an average 0.5 point, up from last week when it averaged 2.57 percent. At this time last year, the 1-year ARM averaged 2.74 percent.
