Rise in mortgage rates cuts into home buyer demand

Rates measured by the Mortgage Bankers Association jumped to the highest level since July 2011, which also cut into refinance activity.

[REUTERS]

Expectations the Federal Reserve will slow its economic stimulus program by the end of the year pushed mortgage rates higher last week, sapping demand from potential home buyers, data from an industry group showed on Wednesday.

Rates measured by the Mortgage Bankers Association jumped to the highest level since July 2011, which also cut into refinance activity. The share of refinance applications fell to the lowest level in more than two years.

Interest rates on fixed 30-year mortgage surged 12 basis points to average 4.58 percent in the week ended June 28, the MBA said.

Read more about home buyer demand at Reuters.