Freddie Mac

Mortgage applications jump, possibly from fear of a bump in interest rates

Mortgage applications jump, possibly from fear of a bump in interest rates

The fear of rising mortgage interest rates may have nudged people into action on home-buying in November.

Mortgage applications were down 0.7 percent during the week ending Dec. 2 from a week earlier, the Mortgage Bankers Association reported Wednesday. But over the last month, mortgage applications for buying new and existing homes jumped 12 percent. The surge in seeking mortgages came as interest rates on 30-year fixed-rate conventional mortgages shot up to 4.27 percent at the end of November from the 3.77 percent rate early in the month. That was a sizable increase for a single month and made it more expensive for a person to buy a home.

The 4.27 percent interest rate was...

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