Mortgage Rates Increase to 5.25%

Rates have bounced back from record lows.

By SHARE

Mortgage rates ticked modestly higher in Freddie Mac's most recent survey, Bloomberg reported:

"The average U.S. rate on a 30-year fixed mortgage rose this week, thwarting Federal Reserve efforts to cut borrowing costs, on investor concern the government will increase spending.

The fixed rate rose to 5.25 percent from 5.10 percent last week, Freddie Mac said in a report today…

Investors are growing a little bit nervous about all the Treasury bonds they’re going to be asked to buy to finance the government’s response to the financial crisis,” said Mark Zandi, chief economist of Moody’s Economy.com.