Mortgage Rates on the Rise…

  Mortgage interest rates are back to their highest levels in a year — and may creep higher still. After hitting a five-month low in early May, rates have made an abrupt turnaroundThe average rate for a 30-year fixed rate mortgage for loans under $417,500 hit 3.9% for the week ended Friday, the Mortgage Bankers Association said Wednesday. That’s the highest since May 2012, and up from 3.59% for the week ended May 3.The latest increase spurred a 12% drop in refinance applications for the week, the largest single week drop in refinance applications this year, the MBA says.The rise in rates has “been a very dramatic move,’ says Bob Walters, chief economist for Quicken Loans. “Mortgage rates have jumped more in the past week than they have in years.”Rates had been trending higher all month on the strength of good economic reports. They really moved last week, Walters says, as markets reacted to mixed signals from the Federal Reserve that raised the possibilit y it might begin to taper its purchases of mortgage-backed securities and Treasury bonds sooner rather than later. Those purchases have helped keep interest rates low

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