Rates on 30-year fixed-rate mortgages rose to the highest level since the end of July as a strong jobs report increased the likelihood that the Federal Reserve will boost borrowing costs for banks.
The average rate for a 30-year fixed mortgage was 3.98%, up from
Last week's jobs report sent Treasury yields soaring as the Fed prepares to decide whether to raise its benchmark rate from near zero at its December meeting. The unemployment rate fell to 5% last month, the lowest level since April 2008.
"We think the markets finally believe a December rate hike is a likely outcome," Erin Lantz, vice president of mortgages at real estate website Zillow, said in a telephone interview Wednesday. "It's safe to say rates are trending upwards, but how much and how quickly is anybody's guess."
Low borrowing costs have given a boost to the housing market. Sales of previously owned homes
