Calculated Risk's Bill Mcbride reports on the rising tide of mortgage rates, with rates hitting the 4% threshold this week--the highest since late September.
Many market watchers and economists believe there's about a one-in-three chance that the Federal Reserve hikes rates in December, and the bond markets are adjusting for that possibility:
Bottom line: the Fed looks pretty serious about hiking in December. That confirmation was worth a bit of extra pain for bond markets, hence the move higher in mortgage rates.
The average lender is now back to 4.0% on conventional 30yr fixed quotes, with only the aggressive few offering anything in the high 3's.