Local News

WASHINGTON, D.C. (Associated Press) – The recovering economy and the end of a government push to make mortgages cheaper are driving up mortgage rates, which could push home shoppers to buy before they are priced out of the market.

The average rate on a 30-year loan jumped from about 5 percent to over 5.3 percent in the past week alone. Refinancing mortgages are still available under 4 percent but only for loans that reset in five or seven years.

For each percentage point that rates rise, 300,000 to 400,000 potential buyers are priced out of the market in a given year or lose about 10 percent of purchasing power, according to the National Association of Realtors.