Rates on 30-year home loans surged above 5 percent for the first time in nearly three months this week as investors pushed up rates on long-term government debt, which is closely tied to mortgage rates. ...
While signs are building that the battered U.S. housing market is beginning to stabilize,
higher rates could endanger any recovery, since borrowers would be able to borrow less money and might decide to hold off on their purchases.
Mortgage applications fell 35 percent last week from a week earlier, the Mortgage Bankers Association said Wednesday. Applications to refinance existing loans, which had made up about three quarters of mortgage applications earlier this spring, fell to about 60 percent of loan volume.
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