By Kenneth R. Gosselin
(MCT)—The era of the 30-year home mortgage rate in the 3′s suddenly appears to be over.
In less than a month, the popular loan option for financing a home purchase has surged by more than a full percentage point. The increase was capped by an eye-catching, quarter-point increase on Friday, mortgage lenders said.
Some lenders were quoting 30-year rates as high as 4.87 percent Friday, compared with 3.65 percent at the beginning of June.
“The market has been so stable for the past two years,” says Kim Neilson, executive vice president at McCue Mortgage in New Britain. “We haven’t experienced this type of jump in years.”
The average rate on a 30-year, fixed mortgage fell to a low of 3.3 percent in early May, according to mortgage giant Freddie Mac.
Neilson said she would be “highly surprised” if the 30-year, fixed-rate home loans dipped below 4 percent again this year. But Neilson expects rates to remain between 4 percent and 5 percent at least through the end of the year.
Rising rates, spurred on by a strengthening economy and federal monetary policy, come as the fragile housing market in Connecticut is starting to show the first signs of recovery.
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